Free Printable The Federal Reserve System

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The Federal Reserve System

Total questions: 13

Worksheet time: 7mins

Name

Class

Date

What is the main job of the Federal Reserve?

To collect taxes for the government.

To oversee international trade agreements.

To manage the country's monetary policy.

To regulate the stock market.

When was the Federal Reserve System created?

November 11, 1918

July 4, 1776

December 23, 1913

January 1, 1900

How many regional Federal Reserve Banks are there in the U.S.?

Who is in charge of setting interest rates in the Federal Reserve System?

Federal Reserve Bank Presidents

Department of Treasury

Board of Governors

Federal Open Market Committee (FOMC)

What is one tool the Federal Reserve uses to control inflation?

Increasing government spending

Lowering taxes

Implementing price controls

Adjusting the federal funds rate

What are the three functions of the Federal Reserve?

Setting tax rates for individuals

Conducting monetary policy, supervising and regulating banks, providing financial services.

Issuing government bonds

Managing international trade agreements

What is the definition of Monetary Policy?

Monetary policy is the process of setting fiscal budgets for government departments.

Monetary policy refers to government spending and taxation decisions.

Monetary policy is the regulation of trade tariffs and import quotas.

Monetary policy is the process by which a central bank manages the money supply and interest rates to influence economic activity.

What occurs in a bank panic?

A rise in stock market investments.

A sudden rush of withdrawals from a bank by its customers.

An increase in bank loans issued.

A decrease in bank interest rates.

Why was the Federal Reserve first created?

To increase government control over the economy.

To provide stability to the U.S. financial system.

To promote international trade agreements.

To regulate the stock market more strictly.

10.

Why does the Federal Reserve perform on-site examinations of banks?

To increase bank profits and shareholder value.

To conduct customer satisfaction surveys.

To ensure safety, compliance, and sound risk management in banks.

To promote new banking technologies and innovations.

11.

Every day, what three things does the Federal Reserve process in large numbers?

loans, mortgages, credit cards

checks, electronic payments, currency transactions

bonds, stocks, real estate

gold, silver, commodities

12.

What is one reason why the Federal Reserve might decide to lower interest rates?

To stimulate economic growth.

To strengthen the dollar's value.

To reduce consumer spending.

To increase inflation rates.

13.

What happens to borrowing and spending when the Federal Reserve raises interest rates?

Borrowing increases and spending rises.

Borrowing remains the same and spending increases.

Borrowing decreases and spending declines.

Borrowing decreases but spending remains unchanged.

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The Federal Reserve System

Total questions: 13

Worksheet time: 7mins

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