FED

Question 1

What does FED stand for?

Answer 1

Federal Reserve System

Question 2

Who established the FED?

Answer 2

Congress

Question 3

When was the FED created?

Answer 3

1913

Question 4

What is the purpose of the FED

Answer 4

Manage Monetary Policy

Question 5

Who established the IRS?

Answer 5

Congress

Question 6

When was the IRS established?

Answer 6

1913

Question 7

What was the IRS established to do?

Answer 7

Be an agent of Fiscal Policy

Question 8

What is “The Federal Reserve System Mission” (4 Things)

Answer 8

Minimize Inflation
Minimize Recession
Minimize Unemployment
Encourage Stable Economic Growth

Question 9

“The Federal Reserve System Mission” can be accomplished through?

Answer 9

Monetary Policy

Question 10

Monetary Policy is in control of what?

Answer 10

The Nation’s Money Supply

Question 11

Monetary Policy - 3 Things

Answer 11

1. Inflationary - More money leads to more spending.
2. Recessionary - Less Money leads to less spending and tends.
3. Balance - The Objective is to have a managed money supply.

Question 12

3 Tools of the FED

Answer 12

1. Setting Reserve Requirements
2. Setting Discount Rate & FED Funds Rate
3. Open Market Operations

Question 13

Setting Reserve Requirement

Answer 13

FED sets limits for Banks & Credit Unions.

Question 14

Discount Rate

Answer 14

Rate charged by the FED when banks borrow from the FED.

Question 15

FED Funds Rate

Answer 15

Rate charged when banks borrow from other banks.

Question 16

Open Market Operations

Answer 16

Buying or selling U.S. Government Securities

Question 17

Highest Level of Management

Answer 17

Fed Board of Governors

Question 18

How many members in the Fed Board of Governors?

Answer 18

7 members

Question 19

How many year term in office for the Fed Board of Governors?

Answer 19

14 year term

Question 20

Who appoints the Fed Board of Governors?

Answer 20

President

Question 21

Who confirms the Fed Board of Governors?

Answer 21

Senate

Question 22

Who is the current Chairman?

Answer 22

Janet Yellen

Question 23

How many Federal Reserve Districts?

Answer 23

12

Question 24

How many Federal Reserve Banks?

Answer 24

37

Question 25

What is Fiscal Policy?

Answer 25

Government Taxation & Spending

Question 26

Who carries out Fiscal Policy? (4)

Answer 26

1. Federal Government 2. State Government 3. Local Government 4. Public Schools

Question 27

Monetary Policy

Answer 27

Control over the nation's money supply.

Question 28

US Government Securities (4)

Answer 28

1. Treasury Bills 2. Treasury Bonds 3. Treasury Notes 4. U.S. Savings Bonds

Question 29

Government Securities add up to equal?

Answer 29

National Debt

Question 30

Attributes which make Treasury Securities attractive to investors? (5)

Answer 30

1. Safe 2. Stable 3. Low Risk/Return 4. Problem Free 5. Always a Market

Question 31

Who buys Treasury Securities? (6)

Answer 31

1. Foreign Government 2. Insurance Companies 3. Individuals 4. Colleges/Universities 5. Banks 6. Corporations

Question 32

Call Report

Answer 32

A report created every 6 weeks by BANKS and CREDIT UNIONS that includes statistical data from DEPOSITS and LOANS.

Question 33

Where are Call Reports sent?

Answer 33

Vice President of Research of the District.

Question 34

Complied Call Reports

Answer 34

The Vice President of Research compiles all the Call Reports from their District.

Question 35

Where are Call Reports sent?

Answer 35

Federal Reserve Headquarters in Washington, DC.

Question 36

Beige Book Report

Answer 36

The Federal Reserve Research staff compiles all of the 12 Compiled Call Reports into a final report.

Question 37

What is the Beige Book Report used for?

Answer 37

Used by the Board of Governors to make Monetary Policy decisions.

Question 38

Who carries out Monetary Policy?

Answer 38

FED

Question 39

Money in banks come from? (5)

Answer 39

1. Deposits 2. Interest from Loans 3. Fees 4. Stocks 5. Selling Bonds

Question 40

What Federal Reserve District are we in?

Answer 40

7

Question 41

Where is our Federal Reserve Bank located?

Answer 41

Chicago

Question 42

Buying U.S. Government Securities does what?

Answer 42

Puts Money back IN to the economy.

Question 43

Selling U.S. Government Securities does what?

Answer 43

Takes Money OUT of the economy.

Question 44

How often does a Fed Board of Governor member's term expire?

Answer 44

2 years

Question 45

Import/Export Activities

Answer 45

International Trade carried out by Commercial Manufacturing and Sale's Companies.

Question 46

Creation of Money

Answer 46

Outcome of Commercial Banking Activities, primarily loans and checking operations.