Quiz on The Federal Reserve System

What is the agency responsible for regulating the system of fiat money in the U.S. economy?

• Federal Reserve

• World Bank

• Bank of England

• International Monetary Fund

How many members are there in the Board of Governors of the Federal Reserve?

• 12

• 5

• 7

• 10

Who appoints the chair of the Federal Reserve for a 4-year term?

• The President

• The European Central Bank

• The Senate

• The Board of Governors

What is the primary tool used by the Federal Reserve to change the money supply?

• Interest Rates

• Foreign Exchange

• Stock Market

• Government Bonds

Which committee at the Federal Reserve is responsible for making monetary policy decisions?

• Board of Governors

• European Central Bank

• Federal Open Market Committee

• Regional Federal Reserve Banks

What is the traditional financial center of the U.S. economy?

• Los Angeles

• New York

• Chicago

• Washington, D.C.

What is the term used for the Fed's role as a lender to financially troubled banks?

• Secondary Lender

• Primary Lender

• Lender of Last Resort

• Lender of First Resort

What is the primary tool used by the Fed to influence the quantity of reserves?

• Interest on Reserves

• Reserve Requirements

• Bank Lending

• Open-Market Operations

What happens to the money supply when the Fed sells government bonds to the public?

• Decreases

• Doubles

• Increases

• Remains the same

How does an increase in reserve requirements affect the money supply?

• Fluctuates

• No Effect

• Decreases

• Increases