Federal Reserve

Question 1

Who is responsible for monetary policy?

Answer 1

The Fed (headquartered in Washington, DC)

Question 2

Where is Bern Bernanke from?

Answer 2

Dillon, SC

Question 3

How many district Federal Reserve banks does the Board of Governors oversee?

Answer 3

12

Question 4

Which member of the Board of Governors taught himself calculus?

Answer 4

Ben Bernanke

Question 5

How many years are the members of the Board of Governors serve?

Answer 5

14 years

Question 6

Who are the members of the Board of Governors appointed by?

Answer 6

The President

Question 7

How many Federal Reserve banks are set up as corporations owned by member banks?

Answer 7

12

Question 8

Twelve Federal Reserve banks are set up as what owned by member banks?

Answer 8

Corporation

Question 9

Twelve Federal Reserve banks are set up as corporations owned by what banks?

Answer 9

Member banks

Question 10

What make the decisions to raise or lower interest rates?

Answer 10

The FOMC

Question 11

The FOMC make the decision to raise or lower what kind of rates?

Answer 11

Interest rates

Question 12

What is the most important function of the Federal Reserve?

Answer 12

To regulate the money supply

Question 13

What does monetary policy involve to change the cost and availability of credit?

Answer 13

Changing the growth rate of the money supply

Question 14

What does loose money mean?

Answer 14

Credit it plentiful and inexpensive

Question 15

What refers to credit plentiful, making it inexpensive?

Answer 15

Loose money

Question 16

What does tight money mean?

Answer 16

Credit is in short supply and expensive

Question 17

What refers to credit in short supply, making it expensive?

Answer 17

Tight money

Question 18

What are many banks required to keep a percentage of their total deposits in?

Answer 18

Cash reserves

Question 19

Currently most financial institutions are required to reserve how much percent of their checkable deposits?

Answer 19

3-10%

Question 20

What is the interest rate the Fed charges its member banks when they borrow money to meet the reserve? (Not a percent)

Answer 20

The Discount Rate

Question 21

In what occurrence including the discount rate does the Fed charge its member banks?

Answer 21

When they borrow money to meet the reserve

Question 22

What is the interest rate banks charge to their best customers (Not a percent)

Answer 22

The Prime Rate