WorksheetsEPF 6.04 The Federal Reserve
Total questions: 20
Worksheet time: 10mins
The Federal Reserve System is...
The world central bank
the U.S. central bank
a place stocks and bonds are sold
All of the above
The Federal Reserve was first created because our nation
didn't trust banks
wanted complete control over all banks
experienced several banking panics and crisis
none of the above
What services does the Fed provide to the banks?
provides cash and lends money to banks
processes payments and electronic money transfers
check clearing
all of the above
Who decides when and which of three monetary tools should be in an effort to manage the economy?
The President
Congress
The Fed Chief
The Federal Open Market Committee
When the Federal Reserve wants to encourage the economy to grow, what does it do with money supply?
increase the money supply
decrease the money supply
sell all of its asset
none of the above
_____ is the price that borrowers pay to borrow money
interest rate
_____ is how much money each bank is required by the Fed to keep on hand
reserve requirement
_____ is the interest rate the banks charge their best customers
prime rate
_____ is the amount of money circulating in the economy
money supply
True or False: Individuals and small businesses are allowed to have bank accounts or do banking with the Fed.
True
False
True or False: The Fed is able to influence the economy by increasing or decreasing the money supply using three key monetary tools.
True
False
The Fed provides financial services to who?
Citizens
Banks
Federal Government
Reserve banks
The tools and strategies used by the Fed to stabilize the economy are called...
Fiscal policy
Monetary policy
Tight Money
Easy Money
What is the FOMC?
A Federal Reserve agency that controls all banks and prevents consumer choice.
A Federal Reserve agency that specializes in monetary policy making.
A Federal Reserve agency specializing in ensuring the nation's economic stability.
Making legislation, declaring war, and interacting in foreign trade.
How many members of the FOMC are from the Board of Governors?
10
7
0
5
The federal government's overall approach to spending and taxes is called
Physical Policy
Fiscal Policy
вежба
Monetary Policy
Which of the following is NOT a job of the Fed?
monitoring member bank reserves
clearing checks
issuing paper currency
printing and minting currency
