Econ lowdown In Plain English
How many districts are there in the Federal Reserve System?
12
How long is the term of a Federal Reserve governor?
14 years
When was the Federal Reserve established?
1913
What is the Federal Reserve's chief body for monetary policy?
FOMC
Which would most closely reflect the strategy of price stability of the Federal Reserve?
an inflation rate that remains steady at 2 percent
How are members of the Board of Governors chosen?
appointed by the president of the United States, confirmed by the us senate
The interest rate Reserve Banks charge commercial banks for short-term loans is the
discount rate
Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this change in price level?
disinflation
While it does not directly set this rate, the Federal Open Market Committee (FOMC) set a target for which of the following rates?
federal funds rate
All but one president of the regional Reserve Banks rotates a voting position on the Federal Open Market Committee (FOMC). Which president has permanent voting privileges?
federal reserve bank of new york
What is the Federal Reserve's most frequently used tool for conducting monetary policy?
open market operations
Which of the following is not a monetary policy tool used by the Federal Reserve?
prime rate
The Federal Reserve is audited on an annual basis.
true
How many voting members are on the FOMC?
7
Which of the following is not one of the three responsibilities of the Federal Reserve System?
lending money to consumers
Which part of the Federal Reserve System serves the daily needs of banks across the country?
reserve banks
Which actions would the FOMC likely take if it were to pursue contractionary monetary policy using open market operations?
sell government securities