FED Quiz

Question 1

What year was the FED established?

Answer 1

1913

Question 2

Who is the current chairman of the FED?

Answer 2

Janet Yellen

Question 3

How many Board of Governors members are there?

Answer 3

7

Question 4

How many years is a Board of Governors term in office?

Answer 4

14

Question 5

Board of Governors are appointed by who?

Answer 5

President

Question 6

Board of Governors appointments are confirmed by who?

Answer 6

Senate

Question 7

How many Federal Reserve Districts are there?

Answer 7

12

Question 8

How many Federal Reserve Banks and Branches are there?

Answer 8

37

Question 9

What year was the IRS established?

Answer 9

1913

Question 10

In what city is the main office complex of the FED located?

Answer 10

Washington, DC

Question 11

Name the four types of U.S. Government Securities

Answer 11

1. Treasury Bond
2. Treasury Bill
3. Treasury Note
4. U.S. Savings Bonds

Question 12

The combined balance of U.S. Gov’t Securities is called?

Answer 12

National Debt

Question 13

Name the 4 attributes of U.S. Gov’t Securities which make them attractive to investors?

Answer 13

1. Safe
2. Always a Market
3. Secure
4. Low Risk/Return

Question 14

What is the four part Mission of the FED?

Answer 14

1. ) Minimize Inflation
2. ) Minimize Unemployment
3. ) Minimize Recession
4. ) Encourage Stable Economic Growth

Question 15

Name four regular purchasers of the U.S. Government Securities?

Answer 15

1. Insurance Companies
2. Universities
3. Companies
4. Individuals

Question 16

The FED attempts to accomplish its mission thru Monetary Policy which is the management of what?

Answer 16

Nations Money Supply

Question 17

What are the three steps to manage the manage the money supply?

Answer 17

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

Question 18

Name the three tools that the FED uses

Answer 18

1. Setting Reserve Requirements
2. Setting the discount Rate & Fed Funds Rate
3. Open Market Operations

Question 19

Open Market Operations

Answer 19

Buying of selling of U.S. Government Securities, buying puts money back into the economy, selling takes money out of the economy.

Question 20

What is Fiscal Policy?

Answer 20

Government Taxation and Spending

Question 21

Who carries out Fiscal Policy?

Answer 21

1. Federal Gov’t
2. Local Gov’t
3. State Gov’t
4. Public Schools

Question 22

What is a “Call Report”?

Answer 22

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

Question 23

What are “Compiled Call Reports”?

Answer 23

VP of Research compiles all of the “Call Reports” of their district and sends that to Federal Reserve Headquarters in Washington DC.

Question 24

What is the “Beige Book”

Answer 24

The Federal Reserve Headquarters compiles all 12 “Call Reports” into a final Report. The Board of Governors uses this to make Monetary Policy decisions.