Title: QUIZ: Making Sense of the Federal Reserve
Course: Recommended Resources for AP Macro from FRE > Section: Unit 4: Financial Sector

Q: Which of the following encouraged Congress to create the Federal Reserve System?
- Banking panics
- High inflation
- High unemployment
- Stock market crash 
A: Banking panics

Q: How are the members of the Board of Governors selected?
- They are appointed by the U.S. Senate and confirmed by the president. 
- They are appointed by the president and confirmed by the U.S. Senate.
- They are appointed by the U.S. Secretary of the Treasury. 
- They are elected every four years during presidential election years. 
A: They are appointed by the president and confirmed by the U.S. Senate.

Q: Which part of the Federal Reserve System is responsible for monetary policy?
- Board of Governors 
- Federal Reserve Banks 
- Federal Open Market Committee
- Federal Reserve Advisory Council 
A: Federal Open Market Committee

Q: How many governors make up the Board of Governors?
- 3
- 7
- 12
- 19
A: 7

Q: The Federal Open Market Committee (FOMC) is composed of
- the members of the Board of Governors and the Reserve Bank presidents.
- the members of the Board of Governors and the U.S. President.
- the U.S. President and the Federal Reserve Bank presidents. 
- the Federal Reserve Bank presidents and the U.S. Secretary of Treasury.
A: the members of the Board of Governors and the Reserve Bank presidents.

Q: Which part of the Federal Reserve System serves as the “bankers bank”?
- Board of Governors
- Federal Reserve Banks
- Federal Open Market Committee
- Department of the Treasury 
A: Federal Reserve Banks

Q: Federal Reserve economists generally agree that the economy performs well when
- there is no inflation.
- inflation is low and stable.
- there is no unemployment. 
- stock market values are rising.
A: inflation is low and stable.

Q: The FOMC determines the target range for which important interest rate?
- Mortgage rate
- Student loan rate 
- Federal funds rate 
- Prime rate
A: Federal funds rate 

Q: How are the tasks of regulation and supervision of the banking system completed by the Federal Reserve System?
- The FOMC regulates, and the Board of Governors supervises
- The Board of Governors regulates, and the FOMC supervises
- The Reserve Banks regulate, and the Board of Governors supervises 
- The Board of Governors regulates, and the Reserve Banks supervise
A: The Board of Governors regulates, and the Reserve Banks supervise

Q: How many Districts are there in the Federal Reserve System?
- 3
- 7
- 12
- 19
A: 12