Functions and Operations of the Federal Reserve Quiz

Jerome Powell is the current Chair of the Federal Reserve.

The fraction of deposits that banks must hold in reserve is known as the Reserve requirement.

The Federal Reserve Bank of New York is headquartered in New York.

The Chair of the Securities and Exchange Commission is NOT a member of the Federal Reserve's Board of Governors.

Gross Domestic Product (GDP) is the measure of the total value of all goods and services produced in a country in a given time period.

Woodrow Wilson signed the Federal Reserve Act into law.

The central banking system of the United States is known as the Federal Reserve System.

The Federal Reserve Bank of California is NOT one of the twelve regional Federal Reserve Banks.

The Federal Reserve's regulation of the money supply to achieve economic goals is known as Monetary policy.

Collecting taxes is NOT one of the main functions of the Federal Reserve.

Open market operations is the primary tool used by the Federal Reserve to conduct monetary policy.

The Federal Reserve System was established by the Federal Reserve Act of 1913.

The buying and selling of government securities by the Federal Reserve is referred to as Open market operations.

Inflation targeting is NOT a type of Federal Reserve monetary policy tool.

Issuing Treasury bills is NOT a way the Federal Reserve can influence the money supply.

The rate at which the general level of prices for goods and services is rising is called the Inflation rate.

Setting interest rates is NOT a tool used by the Federal Reserve to supervise and regulate banks.

The rate at which banks lend money to each other overnight is called the Federal funds rate.

Treasury bond auctions are NOT a tool used by the Federal Reserve to conduct monetary policy.

The rate at which banks borrow from the Federal Reserve in emergency situations is called the Discount rate.

The interest rate at which the Federal Reserve lends to commercial banks is called the Discount rate.

The Federal Reserve's buying of long-term government securities and selling of short-term securities is known as a Twist operation.

Volatility is NOT a characteristic of money.

The period during which a central bank purchases or sells securities to influence the money supply is known as Open market operations.

The Congressional Budget Office is NOT a component of the Federal Reserve System.