Understanding the Federal Reserve

Who is the current chair of the Federal Reserve?

• Alan Greenspan

• Ben Bernanke

• Jerome Powell

• Janet Yellen

What was a significant reason for establishing the Federal Reserve in 1913?

• To manage foreign exchange rates

• To compete with European banks

• To address the 1907 financial panic

• To control inflation

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

• Conducting national monetary policy

• Providing financial services

• Regulating international trade

• Supervising banking institutions

How does the Federal Reserve primarily control inflation?

• By regulating imports

• By increasing taxes

• By setting interest rates

• By issuing bonds

What happens to the Federal Reserve's profits after expenses?

• They are distributed to member banks

• They are turned over to the U.S. Treasury

• They are used to pay off national debt

• They are reinvested in the stock market