Sign up for FREE

Role and Functions of the Federal Reserve

Last updated almost 7 years ago

7 questions

Note from the author:

GSE SSEMA2.b

1

1

1

1

1

1

1

Question 1

1.

The purpose of the Federal Reserve is to

reduce the amount of money in the economy.

promote price stability and economic growth.

to ensure the government has plenty of money.

to manipulate the money supply.

Question 2

2.

Which level of the Federal Reserve does "A" refer to in the diagram above?

District Banks

Member Banks

Federal Open Market Committee (FOMC)

Board of Governors

Question 3

3.

Which level of the Federal Reserve does "B" refer to in the diagram above?

Federal Open Market Committee (FOMC)

District Banks

Member Banks

Board of Governors

Question 4

4.

Which component of the Federal Reserve system does "C" refer to in the diagram above?

Board of Governors

District Banks

Federal Open Market Committee (FOMC)

Member Banks

Question 5

5.

Which component of the Federal Reserve system does "D" refer to in the diagram above?

District Banks

Board of Governors

Federal Open Market Committee (FOMC)

Member Banks

Question 6

6.

The Federal Reserve serves as the bank for the United States government.

True

False

Question 7

7.

The Federal Reserve regulates banks and provides currency to the banking system.

True

False