Chapter 16 Money and the Banking System

| November 9, 2018

1)
The Federal Reserve was created in
A)
1893.
B)
1913.
C)
1921.
D)
1933.

2)
Which of the following serves as the central bank for the United States?
A)
the Federal Reserve System
B)
the Treasury Department
C)
the Federal Deposit Insurance Corporation
D)
the Congress

3)
The Federal Reserve System was created by the
A)
U.S. Treasury.
B)
President.
C)
Congress.
D)
Supreme Court.

4)
When checks are exchanged between banks, the Fed oversees the banks to ensure
the appropriate funds have been transferred. This is known as
A)
check kiting.
B)
check clearing.
C)
check floating.
D)
check balancing.

5)
Which of the following is NOT a subgroup of the Federal Reserve System?
A)
the Federal Reserve Banks
B)
the Federal Funds Market
C)
the Board of Governors
D)
the Federal Open Market Committee

6)
There are ________ Federal Reserve Banks located in different parts of the
United States.
A)
10
B)
12
C)
15
D)
50

7)
Members of the Federal Reserve Board of Governors
A)
are appointed to 4 year terms.
B)
are confirmed by the House of Representatives.
C)
frequently need to deal with political pressures.
D)
are members of the Federal Open Market Committee.

8)
The chairman of the Federal Reserve Board of Governors
A)
sits on the Federal Open Market Committee.
B)
is appointed by the President and confirmed by the Treasury.
C)
serves a fourteen year term as chairman.
D)
is always the president of the Federal Reserve Bank of New York.

9)
The group responsible for deciding on monetary policy is the
A)
Federal Open Market Committee.
B)
Board of Governors only.
C)
Federal Advisory Council.
D)
group of 12 Federal Reserve Bank presidents only.

10)
The voting members of the Federal Open Market Committee are
A)
all of the members of the Board of Governors and all of the presidents of the
12 Federal Reserve banks.
B)
all of the members of the Board of Governors and five of the presidents of the
12 Federal Reserve banks.
C)
the presidents of the 12 Federal Reserve banks and three members of the Board
of Governors.
D)
only the members of the Board of Governors.

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