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Federal Reserve Vocab Quiz

Total questions: 22

Worksheet time: 33mins

Name
Class
Date
1.

When was the Federal Reserve established?

a)

1913

b)

1920

c)

1935

d)

1945

2.

Why was the Federal Reserve created?

a)

To regulate the banking system

b)

To control inflation

c)

To provide loans to businesses

d)

To manage the national debt

3.

What are the main components of the Federal Reserve System?

a)

Board of Governors, Federal Open Market Committee, and 12 regional Federal Reserve Banks

b)

President, Congress, and Supreme Court

c)

House of Representatives, Senate, and Executive Branch

d)

Department of Treasury, Internal Revenue Service, and Federal Deposit Insurance Corporation

4.

How many members are there in the Board of Governors?

a)

10

b)

7

c)

15

d)

20

5.

Why is regulation important for the financial system?

a)

To ensure stability and protect consumers

b)

To increase profits for financial institutions

c)

To reduce competition in the market

d)

To limit access to financial services

6.

"The Fed" refers to the....

a)

Federal Bureau of Investigation

b)

Federal Government

c)

Federal Reserve System/Bank

d)

Federal Income Tax

7.

One primary function of the Federal Reserve system is to

a)

regulate stock market trading

b)

preserve fair competition

c)

keep deflation low and steady

d)

act as a central bank of the United States

8.

What is the Federal Reserve System?

a)

the central banking system of the United States.

b)

a government office for regulating the budget of the United States of America.

c)

the banking system of the southeast

d)

the office that controls tax rates and government spending

9.

Which President signed the Federal Reserve Act into law?

a)

Thomas Jefferson

b)

Woodrow Wilson

c)

Abraham Lincoln

d)

George Washington

10.

The process of goods and services being produced and consumed is called

a)

Inflation

b)

Economy

c)

Consumer

d)

Opportunity

11.

Money that you borrow from a bank:

a)

loan

b)

principal

c)

interest

d)

payment

12.

Putting money into your bank account is a:

a)

deposit

b)

withdrawal

c)

debit

d)

tax

13.

Who runs the FED

a)

The President

b)

Congress

c)

A group of private executives

d)

A board of governors

14.

A goal of the Federal Reserve System is to-

a)

Provide tax money to the government

b)

Set the tax rate

c)

Keep the economy stable

d)

Maintain high interest rates

15.

The attached pictures are all examples of...

a)

Coins

b)

Federal Reserve Notes

c)

Legal contracts

d)

Government issued checks

16.

Who appoints the members of the Board of Governors?

a)

The President of the United States

b)

The Senate

c)

The Federal Reserve Banks

d)

The Board of Directors

17.

Which of the following best describes the relationship between the Federal Reserve and the U.S. government?

a)

The Federal Reserve is a part of the U.S. government and its decisions must be approved by Congress.

b)

The Federal Reserve acts as the government's bank, but operates independently of direct government control.

c)

The Federal Reserve is under the direct control of the President of the United States.

d)

The Federal Reserve and the U.S. government are completely separate entities with no direct influence over each other.

18.

What is the purpose of the Federal Reserve System?

a)

to make loans to banks, issue currency, and regulate the money supply

b)

to store the gold and silver reserves that back U.S. currency

c)

to provide federal insurance to safeguard the deposits in banks

d)

to deregulate banks and savings and loans institutions

19.

The Fed influences the money supply and interest rates in the economy to keep this low and stable-

a)

Supply

b)

Price

c)

Interest

d)

Inflation

20.

What does FOMC stand for?

a)

Federal Official Money Committee

b)

Federal Open Market Committee

c)

Federal Organization for Monetary Control

d)

Federal Operations and Management Committee

21.
What is the name of our nation's central bank?
a)
The Federal Reserve
b)
The United States National Bank
c)
The National Bank of the United States
d)
Bank of America
22.

What is the purpose of the Federal Reserve System?

a)

to make loans to banks, issue currency, and regulate the money supply

b)

to store the gold and silver reserves that back U.S. currency

c)

to provide federal insurance to safeguard the deposits in banks

d)

to deregulate banks and savings and loans institutions