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Unit 3: The Federal Reserve

STUDY
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True
The Chairman of the Federal Reserve has great influence on the American economy.
True
There are four functions of the Federal Reserve System.
True
The Federal Reserve is the government's bank.
False
Every United States Present when elected appoints a new Board of Governors for the Federal Reserve System
False
Another name for the Federal Reserve is the FBI.
True
Alan Greenspan was the Chairman of the Federal Reserve system from 1987-2006.
True
The Fed keeps the economy healthy by managing the nation's money supply.
True
Congress wrote the Federal Reserve Act in 1913.
False
High inflation is a long-term goal of the Fed.
True
The Fed was once known as the lender of last resort.
True
The Fed regulates banks to keep the banking system safe and sound.
True
One of the Fed's responsibilites is to supervise and regulate national and state banks.
False
There are 12 members of the Board of Governors.
True
The purpose of the creation of the Fed was in response to problems with the nation's changing money supply.
True
The Fed uses changes in the reserve requirements to decrease or increase the amount of money a bank has available to lend.
False
If inflation begins, the Fed increase the money supply by decreasing the reserve requirement.
True
The discount rate is the rate charged by the Fed on loans it makes to financial institutions.
True
Increasing the money supply, reduces the discount rate.
True
The Open Market Committee is responsible for the Open Market Operations.
False
The Fed plays a minor role in both the national and international economics.
False
The Fed is not responsible for the managment of the nation's money supply.
True
The Fed's most powerful tool is the operations of the FOMC.
Ben S. Bernanke
Since February 1, 2005 he has been chairman of the Federal Reserve
St. Louis, Missouri
Where is the District Reserve Bank for Arkansas?
1920's
What year was the first "electronic fund transfer" by the Federal Reserve
Board of Governors, Reserve Banks, FOMC
The parts of the Federal Reserve
Federal Reserve Act
Written in 1913 by Congress
national
The Fed combines centralized --- authority with a healthy dose of regional independence.
governors
The seven members of the Federal Reserve Board
vote
Each FOMC meeting ends with a --- on actions that will affect the country's money supply.
Economist
The people at the Reserve banks are all experts on different aspects of our national economy.
discount window
One way the Fed ensures safety and soundness of the banking system is by making short term loans to banks though its ____.
supply
The Fed keeps the economy healthy by managing the nation's money ____.
discount rate
The ____ is set by each of the 12 Federal Reserve Banks.
checks
Banks deposit billions of dollars at the Fed in cash, ____, wire transfers or other forms of electronic payments.
payment
A goal of the Fed is to improve the efficiency of the nation's ____ system.
regulate
One of the Fed's responsibilities is to supervise and ____ certain commercial banks.
resort
The Fed was once known as the lender of the last ____.
collection system
Through the 12 Federal Reserve Districts, a nationwide check _____ was created.
12
How many District Reserve Banks are there?
Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City
Six Federal Reserve Districts
Minneapolis, New York, Philadelphia, Richmond, San Francisco, St. Louis
Six Federal Reserve Districts
Social Security recipients
The Federal Reserve system pays these people.
Treasury notes
As the Government's bank the Fed is responsible for selling
Overseeing District Reserve Banks
The Board of Governors are reponsible for ___.
Conducting bank examinations, protecting consumers, supervising international banks
The responsiblities of a bank supervisor of the Fed.
financial
One of the Fed's responsiblities is to provide ____ services to any bank.
inflation
Low --- is a long-term goal of the Fed.
sound
The Fed regulates certain banks to keep the banking system safe and ____.