The Fed Today (Federal Reserve & Monetary Policy

Which of the following are the two main entites of the Federal Reserve system?

- 12 regional banks - the Board of Governors

(Check ALL that apply) Which of the following are things examiners look at/for when examining a bank or bank holding company?

- The potential risk of the bank's investments. - Whether or not the bank if following all applicable laws. - The financial records of the bank.

(Check all that apply) According to the video, which of the following are goals of the Federal Reserve?

- a stable economy - low unemployment - steady economic growth - stable prices

Some of the primary responsibilities of the Federal Reserve include:

- banking supervision - determining monetary policy - fiancial services

Throughout much of the 1800's, any organization that wanted, could print its own money.

True

The Federal Reserve in charge of ______ for the United States.

monetary

In it's supervisory role, the Fed _________.

monitors banks

Prior to the creation of the Federal Reserve system, if a bank failed:

people would be in danger of losing their entire savings.

If the Federal Reserve determines that there is too much money in the economy it will:

sell securities

When the supply of money decreases:

the demand for goods and services decreases.

When the supply of money increases:

the demand for goods services will increase

The Federal Reserve system was established in ________.

1913

The Federal Reserve was established in:

1913

According to the video, due to government safeguards and regulations, it was very unusual for people to lose confidence in the financial and banking system.

False

From 1913 to today, the purpose of the Federal Reserve has changed dramatically.

False

The Federal Reserve operates independently of the Federal Government.

False

The Federal Reserve works 24 hours a day, seven days a week to clear all the checks sent its way.

False

Currency bills are officially known as ______.

Federal Reserve notes

The Federal Reserve acts as the "fiscal agent" of the United States.

True

Members of the Federal Reserve's Board of Governors are:

appointed by the President and confirmed by the Senate.

If the Federal Reserve determines there is not enough money in the economy it will:

buy securities

The Federal Reserve aims to stabilize the nation's supply of money and credit primarily by:

buying and selling government securities

(Check all that apply) The Federal Reserve's influence on the U.S. economy comes from it's ability to:

change the supply of money in the economy.

The Federal Reserve gathers information about how much money needs to be added or taken away from the nation's money supply _________.

everyday

The Federal Reserve system:

is the central bank of the United States.

Inflation typically occurs when:

the supply of money grows faster than the production of goods and services.

Settlement is ________.

the transfer of value from one bank's account to another bank

According to the video, the central mission of the Federal Reserve is to:

to maintain the public's confidence in our nation's monetary and banking system.

The Federal Reserve systen was created:

to provide a safer and more stable monetary and banking system.

The Federal Reserve is sometimes referred to as the "Banker's bank" because it:

transfers funds and/or payments from one bank to another.