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Federal Reserve System Quiz

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

What year was the Federal Reserve System established?

a)

1913

b)

1929

c)

1965

d)

1945

2.

How many members are on the Board of Governors?

a)

12

b)

7

c)

5

d)

9

3.

Which of the following is NOT a goal of the Federal Reserve?

a)

Economic growth

b)

Maximum employment

c)

Currency devaluation

d)

Price stability

4.

Where is the Board of Governors located?

a)

San Francisco

b)

Washington, D.C.

c)

Chicago

d)

New York

5.

What is the primary function of the Federal Open Market Committee (FOMC)?

a)

Issue currency

b)

Provide financial services

c)

Regulate banks

d)

Control monetary policy

6.

Which tool involves buying and selling government securities?

a)

Interest rate adjustments

b)

Open market operations

c)

Discount rate

d)

Reserve requirements

7.

What happens when the Fed lowers the discount rate?

a)

Slows down inflation

b)

Decreases money supply

c)

Increases reserve requirements

d)

Encourages borrowing and spending

8.

What is a con of the Federal Reserve System?

a)

Lender of last resort

b)

Lack of full transparency

c)

Independent from politics

d)

Economic stability

9.

What is the term length for a member of the Board of Governors?

a)

14 years

b)

10 years

c)

8 years

d)

4 years

10.

Which of the following is a pro of the Federal Reserve System?

a)

Regulates and supervises banks

b)

Limited public accountability

c)

Potential for economic manipulation

d)

Political influence