The Federal Reserve

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

Which part of the Fed decides when to raise or lower interest rates?

• Board of Governors
• Advisory Committee
• Chairman
• Federal Open Market Committee

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

Does increasing the money supply cause inflation or deflation?

• Inflation
• Deflation

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

The Federal Reserve

• is made up of 12 district banks and 25 branch banks.
• is managed by a 12-member board of directors.
• is made up of district banks that operate independently from one another.

The Federal Reserve System was established in

• 1799
• 1913
• 1863
• 1881

The Federal Reserve Bank is both centralized and decentralized. 

• True
• False

The president of the United States appoints members of which group on the Federal Reserve organization chart?

• Federal Open Market Committee
• Federal Advisory Council
• Board of Governors

What does Inflation do to the value of money?

• Makes it go up.
• Makes it go down.
• Makes it stay the same.