Title: QUIZ: Making Sense of the Federal Reserve Module
Course: Kelly's Copying and Exporting Course > Section: Making Sense of the Federal Reserve Module

Q: The president of which Federal Reserve Bank votes at every FOMC meeting?
- Federal Reserve Bank of St. Louis
- Federal Reserve Bank of Chicago
- Federal Reserve Bank of New York
- Federal Reserve Bank of San Francisco
A: Federal Reserve Bank of New York
If right: That is correct.
If wrong: That is incorrect. The Federal Reserve Bank of New York has a permanent voting position on the Federal Open Market Committee.

Q: How long is the term of a Federal Reserve governor?
- 4 years
- 6 years
- 14 years
- No limit, it's a lifetime appointment.
A: 14 years
If right: That is correct.
If wrong: That is incorrect. The term for a Federal Reserve governor is 14 years.

Q: How many voting members are on the FOMC?
- 5
- 7
- 12
- 14
A: 12
If right: That is correct.
If wrong: That is incorrect. There are 12 voting members of the FOMC. Seven governors, the president of the Federal Reserve Bank of New York, and four of the Federal Reserve District Bank presidents.

Q: While it does not directly set this rate, the Federal Open Market Committee (FOMC) sets a target range for which of the following rates?
- Mortgage rates
- Federal funds rate
- Discount rate
- Prime rate
A: Federal funds rate
If right: That is correct.
If wrong: That is incorrect. The federal funds rate is a market-based rate that the Federal Reserve sets a target range for and uses their monetary policy tools to try and achieve.

Q: How are members of the Board of Governors chosen?
- Appointed by the president of the United States, confirmed by the House of Representatives
- Elected by the presidents of the 12 regional Reserve Banks
- Elected by the people of the United States of America
- Appointed by the president of the United States, confirmed by the U.S. Senate
A: Appointed by the president of the United States, confirmed by the U.S. Senate
If right: That is correct.
If wrong: That is incorrect. Federal Reserve governors are appointed by the president and confirmed by the U.S. Senate.

Q: How often is the Federal Reserve audited?
- Annually
- Every 5 years
- Never
- Every 10 years
A: Annually
If right: That is correct.
If wrong: That is incorrect. The Federal Reserve is audited annually.

Q: What is the Federal Reserve's chief body for monetary policy?
- FOMC
- Reserve Banks
- Board of Governors
- The U.S. Department of the Treasury
A: FOMC
If right: That is correct.
If wrong: That is incorrect. The Federal Open Market Committee (FOMC) is the primary monetary policy decisionmaking body of the Federal Reserve.

Q: What are the three responsibilities of the Federal Reserve Banks?
- Regulating financial markets, conducting fiscal policy, and providing financial services
- Supervising banks, conducting monetary policy, and providing financial services
- Supervising financial institutions, setting fiscal policy, and providing financial services
- Supervising banks, conducting fiscal policy, and providing financial services
A: Supervising banks, conducting monetary policy, and providing financial services
If right: That is correct.
If wrong: That is incorrect. The three responsibilities of the Federal Reserve Banks are supervising banks, conducting monetary policy, and providing financial services.

Q: Which part of the Federal Reserve System serves the daily needs of banks across the country?
- FOMC
- Federal Reserve Banks
- Board of Governors
- The U.S. Department of the Treasury
A: Federal Reserve Banks
If right: That is correct.
If wrong: That is incorrect. The Federal Reserve Banks act as a "bank for banks" and see to the daily needs of banks across the country.

Q: How many Districts are there in the Federal Reserve System?
- 6
- 9
- 12
- 15
A: 12
If right: That is correct.
If wrong: That is incorrect. There are 12 Districts in the Federal Reserve System.

Q: Which are the three entities of the Federal Reserve System?
- The Board of Governors, the FOMC, and the Federal Reserve Banks
- The Board of Bankers, the FOMC, and the Federal Reserve Banks
- The Board of District Banks, the OMB, and the FDIC
- The Board of Governors, the FOMC, and the Federal Reserve member banks
A: The Board of Governors, the FOMC, and the Federal Reserve Banks
If right: That is correct.
If wrong: That is incorrect. The three entities of the Federal Reserve System are the Board of Governors, the FOMC, and the Federal Reserve Banks.

Q: The central bank for the United States is
- The Federal Deposit Insurance Corporation
- The Federal Reserve
- The Bank of the United States
- The Federal Bank of the United States
A: The Federal Reserve
If right: That is correct.
If wrong: That is incorrect. The Federal Reserve is the central bank for the United States.

Q: Which of the following is an advantage of the Federal Reserve’s regional structure?
- It strengthens the United States standing in the world economy.
- It provides a centralized decisionmaking body for currency circulation.
- It ensures the national perspective is represented to the public during press conferences.
- It provides a regional perspective and expert knowledge about local communities to the public and policymakers.
A: It provides a regional perspective and expert knowledge about local communities to the public and policymakers.
If right: That is correct.
If wrong: That is incorrect. The regional structure of the Federal Reserve provides a regional perspective and expert knowledge about local communities to the public and policymakers.

Q: What is the primary difference between bank supervision and bank regulation?
- Bank regulation involves writing rules for financial institutions, while bank supervision enforces these rules.
- Bank regulation is carried out by the Board of Governors, while bank supervision is carried out by the FOMC.
- Bank regulation focuses on international organizations, while bank supervision focuses on state-chartered member banks.
- Bank regulation involves enforcing rules, while bank supervision involves writing them.
A: Bank regulation involves writing rules for financial institutions, while bank supervision enforces these rules.
If right: That is correct.
If wrong: That is incorrect. Bank regulation defines acceptable behavior for financial institutions, while bank supervision enforces these rules.

Q: Which of the following best defines the discount window?
- A tool used by the Federal Reserve to control the money supply by lending directly to the public
- Lending by the Fed to depository institutions to support liquidity and stability in the banking system
- A method for regulating the interest rates set by banks through supervision rule enforcement
- A mechanism for the Federal Reserve to issue new currency by allowing more reserves to be deposited
A: Lending by the Fed to depository institutions to support liquidity and stability in the banking system
If right: That is correct.
If wrong: That is incorrect. The discount window is a function of the Federal Reserve where the Fed lends to depository institutions to support liquidity and stability in the banking system.

Q: Which of the following is a key benefit of the Federal Reserve's independence?
- It allows the Fed to directly influence fiscal policy.
- It enables the Fed to operate without interference from electoral politics.
- It enables the Fed to set interest rates based on private banking interests.
- It allows the Fed to be directly controlled by Congress.
A: It enables the Fed to operate without interference from electoral politics.
If right: That is correct.
If wrong: That is incorrect. Fed independence ensures the Fed can carry out its responsibilities without interference from electoral politics.

Q: Which of the following is one way the Federal Reserve protects consumers?
- By ensuring that loans are available to banks through the discount window
- By allowing banks to set their own interest rates and fees
- By not enforcing fair lending regulations based on race, gender, and age
- By regulating banks' issuance of debit cards to ensure fair transactions and appropriate fees
A: By regulating banks' issuance of debit cards to ensure fair transactions and appropriate fees
If right: That is correct.
If wrong: That is incorrect. The Federal Reserve protects consumers by regulating banks' issuance of debit cards to ensure fair transactions and appropriate fees.

Q: Congress has given the Federal Reserve a mandate to focus on achieving which of the following economic goals?
- Maximum employment only
- Inflation and unemployment
- Maximum employment and stable prices
- Stable prices only
A: Maximum employment and stable prices
If right: That is correct.
If wrong: That is incorrect. The Congressional mandate given to the Federal Reserve is to focus on achieving maximum employment and stable prices.

Q: How is the Federal Reserve accountable to Congress?
- Congress sets the Fed’s policy goals, and Fed officials report regularly on progress toward meeting those goals.
- The Fed is not accountable to Congress; it is accountable to the judicial branch.
- The Fed sets its own policy goals but reports regularly to Congress.
- The Fed reports to Congress only when there is a financial crisis and works with them to set policy goals.
A: Congress sets the Fed’s policy goals, and Fed officials report regularly on progress toward meeting those goals.
If right: That is correct.
If wrong: That is incorrect. The Fed's policy goals are specified by Congress, and Fed officials report regularly on progress toward meeting those goals.

Q: Which of the following best defines monetary policy?
- The actions taken by a government to regulate trade and commerce
- The strategies used by businesses to maximize profits
- The actions of a central bank to manage the economy through interest rates and money supply
- The process of budgeting and allocating resources within an organization
A: The actions of a central bank to manage the economy through interest rates and money supply
If right: That is correct.
If wrong: That is incorrect. Monetary policy includes actions of a central bank to manage the economy through interest rates and money supply.

Q: Use the picture below to answer the question.

The FOMC makes monetary policy decisions based on efforts to achieve which of the following?
- To raise/lower mortgage rates for households
- To encourage business and consumer spending
- To progress toward maximum employment and stable prices
- To progress toward policy implementation and market balance
A: To progress toward maximum employment and stable prices
If right: That is correct.
If wrong: That is incorrect. The FOMC makes monetary policy decisions based on efforts to progress toward maximum employment and stable prices.