Title: QUIZ: Supervising and Regulating Financial Institutions -- Fed Functions Video Series
Course: Kelly's Copy-Export Course > Section: Supervising and Regulating Financial Institutions -- Fed Functions Video Series

Q: Why does the Federal Reserve have the responsibility of supervising and regulating banks and other financial institutions?
- Because banks and financial institutions play an increasingly important role in the broader economy
- Because the amount of counterfeit bonds and cash are harming the validity of U.S. currency
- Because managing the nations payment system is too complex for the government to handle alone
- Because the debt crisis in the country is increasing exponentially
A: Because banks and financial institutions play an increasingly important role in the broader economy

Q: Who establishes the laws and regulations for financial institutions?
- Each individual private institution
- The United Nations Financial Institution Committee
- United States Congress and the Federal Reserve
- The United States Senate
A: United States Congress and the Federal Reserve

Q: Who from the Federal Reserve goes into banks to evaluate its operations?
- The Board of Governors
- The examiners
- The economists
- The Treasury Department
A: The examiners

Q: What could happen when the Federal Reserve finds evidence than an institution hasn’t followed laws or regulations?
- The Fed could issue a penalty.
- The institution goes to trial.
- The institution immediately shuts down.
- The owners get arrested.
A: The Fed could issue a penalty.