#1
Which of the following is one of the primary functions of the Federal Reserve System?
Issuing driver's licenses
Regulating interstate commerce
Conducting monetary policy
Enforcing federal tax laws
#2
Which Federal Reserve System component is responsible for supervising and regulating banks?
Board of Governors
Federal Reserve Banks
Federal Open Market Committee
Federal Deposit Insurance Corporation
#3
Which of the following is NOT a Federal Reserve System function?
Issuing currency
Conducting monetary policy
Regulating the stock market
Supervising and regulating banks
#4
What is the primary purpose of the Federal Reserve System's establishment?
To provide loans to businesses
To stabilize the economy
To regulate international trade
To enforce immigration laws
#5
Which of the following entities appoints members to the Federal Reserve Board of Governors?
The President of the United States
The Senate
The Supreme Court
The Federal Reserve Banks
#6
What is the term used to describe the interest rate at which the Federal Reserve lends money to banks?
Discount rate
Prime rate
Federal funds rate
Treasury rate
#7
Which of the following is a function of the Federal Open Market Committee (FOMC)?
Issuing currency
Setting fiscal policy
Regulating banks
Conducting open market operations
#8
What is the term used to describe the Federal Reserve's buying and selling of government securities?
Fiscal policy
Discount rate
Open market operations
Quantitative easing
#9
Which of the following statements about the Federal Reserve's structure is true?
There are 12 Federal Reserve Banks
There is one Federal Reserve Bank in each state
The Federal Reserve Board consists of 12 members
The Chair of the Federal Reserve Board is appointed by the President for a lifetime term
#10
What is the term for the buying and selling of government securities in the open market by the Federal Reserve?
Fiscal policy
Monetary policy
Quantitative easing
Open market operations
#11
What is the purpose of the Federal Reserve's dual mandate?
To control inflation only
To maximize employment and stabilize prices
To regulate banks and financial institutions
To maintain a balanced budget
#12
What is the term for the fraction of deposits that banks must hold in reserve?
Reserve ratio
Liquidity ratio
Solvency ratio
Capital adequacy ratio
#13
Which of the following is an example of a tool the Federal Reserve uses to conduct monetary policy?
Raising or lowering taxes
Adjusting government spending
Setting the federal budget deficit
Changing the federal funds rate
#14
What is the term used for the interest rate at which depository institutions lend reserve balances to other depository institutions overnight on an uncollateralized basis?
Prime rate
Federal funds rate
Discount rate
LIBOR
#15
Which of the following is NOT a component of the Federal Reserve System?
Federal Reserve Banks
Board of Governors
Securities and Exchange Commission
Federal Open Market Committee