Test Your KnowledgeStructure and Functions of the Federal Reserve

Click on the letter of your choice to test your

understanding.

A B C

Question 1The structure of the Federal Reserve includes:

•12 district banks, 24 branches, the Board of Governors, and the FOMC

A

•24 district banks and the Board of Governors

B

•The FOMC, 12 district banks, and 24 branches

C

Question 2The seven members who are appointed by the U.S. president and confirmed by the Senate for 14-year terms are the

•District Bank presidents

A

• Board of Governors

B

•Federal Open Market Committee members

C

Question 3The nation’s monetary policy is conducted by:

• The Fed’s Board of GovernorsA

• The president and CongressB

• The Federal Reserve’s Open Market CommitteeC

Question 4

The Federal Open Market Committee’s voting members are:

• The Board of Governors and 12 district presidentsA

• The Board of Governors and five district presidentsB

• The district bank presidentsC

Question 5Because Reserve Banks are owned by member banks while governors are political appointees, the Fed is:

• A quasi-governmental institutionA

• A for-profit organizationB• A limited liability

companyC

Question 6The functions of the Federal Reserve are:

• The buying and selling of stock in the open marketA

• FOMC, district banks, and payment servicesB

• Monetary policy, payment services, and bank supervision and regulation

C

Question 7The goals of monetary policy are:

• Maximum economic growth and employment and stable pricesA

• Influencing the money supplyB

• Stable prices and open market operationsC

Question 8The function of the Fed that includes being the “banker’s bank” is:

• Monetary policyA• Supervision and regulationB• Payment servicesC

Question 9Which of the following financial institutions are regulated by the Federal Reserve?

• All types of financial institutions are regulated by the FedA

• National banksB• International banking

organizationsC

Question 10Which of the following was NOT established as consequence of the Wall Street Reform and Consumer Protection Act (also known as the Dodd-Frank Act)?

• The Bureau of Consumer Financial ProtectionA

• The Financial Stability and Oversight CouncilB

• The Fed’s dual mandateC

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