economics test 4
How many Federal Reserve regional banks are there?
12
What kind of bank is the Federal Reserve?
A central bank
Who served as the first US Secretary of the Treasury and created the nation's first central bank in 1791?
Alexander Hamilton
How did the federal government put money into banks and industries to keep them from failing?
Bailouts
These seven (7) members appointed by the president manage the Federal Reserve's operations:
Board of Governors
During the 2007-2009 financial crisis, unemployment skyrocketed to 12% and the United States fell into recession. To stabilize the economy and smooth the business cycle, what steps did the Federal Reserve take to encourage spending?
Bought securities and lowered interest rates to increase the money supply
The Great Recession of 2007-2009 was primarily caused by bad loans that led to what?
Credit crunch
Which "tool" would the Federal Reserve use during a recession to help the economy expand by increasing the money supply?
Easy money open market operation
What do commercial banks charge each other for short-term loans?
Federal funds rate
What 1933 law separated commercial and investment banking to minimize risk-taking?
Glass-Steagall
Who is the current Federal Reserve Chair?
Janet Yellen
Which Reserve Bank President is a permanent voting member of the FOMC?
New York
Which is NOT a goal or responsibility of the Federal Reserve?
Set prices for other country's money
Which is NOT an advantage to the Fed's monetary policy?
immunity to government shutdowns
What is NOT a part/ "tool" of monetary policy?
income tax rates
The percentage of demand deposits (money) kept on hand at banks to minimize risk-taking is called:
reserve requirement
The nation is suffering from high inflation. The Fed should:
sell bonds to decrease the money supply
Which is NOT a branch of the Federal Reserve?
the Treasury Department
Which type of institution is NOT supervised and regulated by the Fed?
the stock market
Why was the Federal Reserve system created?
to stop panic runs on the banks
