Federal Reserve System Quiz

When was the Federal Reserve System created?

• 1873

• 1893

• 1907

• 1913

What was the main reason for creating the Federal Reserve System?

• To establish a central bank

• To help end periodic financial panics

• To promote consumer protection

• To foster payment and settlement system safety

Which of the following is NOT one of the key functions of the Federal Reserve System?

• Conducting the nation's monetary policy

• Helping maintain the stability of the financial system

• Supervising and regulating financial institutions

• Issuing currency notes

What is the primary role of the FED (central bank)?

• To regulate international trade

• To conduct monetary policy

• To manage government spending

• To oversee educational programs

Which of the following is NOT a component of the FED's monetary policy?

• Promoting maximum employment

• Price stability

• Moderate long-term interest rates

• Controlling government debt

How many members are there on the FED Board of Governors?

• 5

• 7

• 9

• 12

Who appoints the members of the FED Board of Governors?

• The President

• The Senate

• The House of Representatives

• The Supreme Court

What does M1 include?

• Mutual funds and CDs

• All currency, checkable deposits, and traveler's checks

• Stocks and bonds

• Real estate properties

Which of the following is included in M2 but not in M1?

• Traveler's checks

• Checkable deposits

• Mutual funds

• Coins

What does the FED buy and sell to affect the Money Supply?

• Stocks and bonds

• Commodities and goods

• Securities (Treasury bonds)

• Real estate and properties