Structure and Purpose of the Federal Reserve

Front

What is the primary function of the Federal Reserve System?

Back

Manage the nation’s monetary policy

Front

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

Back

12

Front

What is the main role of the 12 regional Federal Reserve Banks?

Back

Supervise commercial banks and distribute currency

Front

Who oversees the Federal Reserve System?

Back

The Board of Governors

Front

How many members are on the Board of Governors?

Back

7

Front

Who appoints the Chair of the Federal Reserve?

Back

The President

Front

How long is the term for the Federal Reserve Chair?

Back

4 years

Front

What best describes monetary policy?

Back

The Fed’s actions to influence the money supply and credit.

Front

What is the federal funds rate?

Back

The interest rate banks charge each other for overnight loans.

Front

Who sets the federal funds rate?

Back

The Federal Reserve