Test Yourself!

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1. Who created the Federal Reserve System?

Answer: Congress
2. Name the three parts of the Federal Reserve System.

Answer: Reserve banks, FOMC, Board of Governors
3. Which part determines the nation's monetary policy?

Answer: FOMC
4. What rate does the FOMC target?

Answer: The federal funds rate
5. How many districts make up the Federal Reserve System?

Answer: 12
6. Which part of the Federal Reserve System is centralized?
Which is decentralized?

Answer: Board of Governors, Reserve banks
7. What are the three responsibilities of the Federal Reserve System?

Answer: Conducting monetary policy, supervising and regulating banks and providing financial services
8. Which activity is NOT seen at a Reserve bank:
An economist studying unemployment figures
A bundle of checks sorting through a processing machine
A bank examiner writing a risk report
A group of students walking through Bank halls

Answer: All are seen at Reserve banks
9. How does banking supervision differ from banking regulation?

Answer: Banking regulation refers to the writing of rules that define acceptable behavior for financial institutions; banking supervision refers to the enforcement of these rules
10. What form of payment includes funds transfer and ACH services?

Answer: Electronic
     
   

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