FED Quiz Flashcards
What year was the FED established?
1913
Who is the current chairman of the FED?
Janet Yellen
How many Board of Governors members are there?
7
How many years is a Board of Governors term in office?
14
Board of Governors are appointed by who?
President
Board of Governors appointments are confirmed by who?
Senate
How many Federal Reserve Districts are there?
12
How many Federal Reserve Banks and Branches are there?
37
What year was the IRS established?
1913
In what city is the main office complex of the FED located?
Washington, DC
Name the four types of U.S. Government Securities
- Treasury Bond
- Treasury Bill
- Treasury Note
- U.S. Savings Bonds
The combined balance of U.S. Gov’t Securities is called?
National Debt
Name the 4 attributes of U.S. Gov’t Securities which make them attractive to investors?
- Safe
- Always a Market
- Secure
- Low Risk/Return
What is the four part Mission of the FED?
- ) Minimize Inflation
- ) Minimize Unemployment
- ) Minimize Recession
- ) Encourage Stable Economic Growth
Name four regular purchasers of the U.S. Government Securities?
- Insurance Companies
- Universities
- Companies
- Individuals
The FED attempts to accomplish its mission thru Monetary Policy which is the management of what?
Nations Money Supply
What are the three steps to manage the manage the money supply?
- Inflationary - More money leads to more spending
- Recessionary - Less money leads to less spending
- Balance - Objective to have a managed money supply
Name the three tools that the FED uses
- Setting Reserve Requirements
- Setting the discount Rate & Fed Funds Rate
- Open Market Operations
Open Market Operations
Buying of selling of U.S. Government Securities, buying puts money back into the economy, selling takes money out of the economy.
What is Fiscal Policy?
Government Taxation and Spending
Who carries out Fiscal Policy?
- Federal Gov’t
- Local Gov’t
- State Gov’t
- Public Schools
What is a “Call Report”?
A report created every 6 weeks by Banks and Credit Unions that Includes information on Deposits and Loans.
Sent to the VP of Research of their District
What are “Compiled Call Reports”?
VP of Research compiles all of the “Call Reports” of their district and sends that to Federal Reserve Headquarters in Washington DC.
What is the “Beige Book”
The Federal Reserve Headquarters compiles all 12 “Call Reports” into a final Report. The Board of Governors uses this to make Monetary Policy decisions.
