The Federal Reserve System
Who controls the Fed?
a seven-person board of governors
All banks are members of the Federal Reserve System?
false
The Federal Reserve System charters new banks?
false
The Federal Reserve System prints currency?
false
There are eighteen Federal Reserve Districts in the system?
false
What does the Fed offer?
financial advice to member banks, holding of deposits, provides quick access to currency, and check-clearing facilities.
How long is a board member's term?
fourteen years
How many times does the FOMC meet per year?
ten times a year
The Federal Reserve System
the central bank of the united states
Who appoints each member of the board of governors?
the president
A twelve-person Federal Reserve advisory Council comprised of one commercial banker from each of the Federal Reserve Banks meets periodically with the Board of Governors to offer advice?
true
Control of the Federal Reserve rests in the Board of Governors?
true
The Federal Reserve System acts as the monetary agent for the federal government?
true
The Federal Reserve System holds deposits from member banks?
true
The Federal Reserve System may be altered by an act of Congress?
true
The Federal Reserve System processes checks for banks nationwide?
true
The Federal Reserve System regulates the nation's money supply?
true
The Federal Reserve System supervises member banks?
true
The Federal Reserve System supplies paper currency for member banks when they need it?
true
How many Federal Reserve Districts are there?
twelve
When did the Fed begin?
1913
Federal Open Market Committee (FOMC)
Board of Governors + presidents of five Federal Reserve Banks
What does the Board of Governors oversee?
Federal Reserve Districts, Federal Reserve Banks, branches of Federal Reserve Banks.
Which M? You open a regular checking account with a deposit of $400, the money you earned over the summer.
M1
Which M? You receive $600 from the sale of a painting and deposit the money in an account.
M1
Which M? You receive a cash gift of $500 from a rich uncle.
M1
Which M? You write a check to pay for your college tuition.
M1
M2
M1 plus savings balances
Which M? You purchase a $50 U.S. Savings Bond.
M2
Which M? You put a gift of $100 into a savings account.
M2
Which is always greater M1 or M2?
M2
How are the Terms staggered?
Terms are staggered to expire one every two years
What created the Fed?
The Federal Reserve Act of 1913
M1
all currency plus demand deposits