The Federal Reserve: Learn About the Central Bank of the United States

Question 1

Why is it important to regulate banks?

Accepted Answer

To ensure the safety and stability of the banking system

Answer

To maximize bank profits

Answer

To prevent banks from lending too much money

Answer

To provide loans to businesses

Question 2

How does the Federal Reserve help to control inflation?

Accepted Answer

Raising interest rates

Answer

Lowering interest rates

Answer

Increasing the money supply

Answer

Decreasing the money supply

Question 3

Which of the following is NOT a responsibility of the Federal Reserve?

Accepted Answer

Collecting taxes

Answer

Setting interest rates

Answer

Printing money

Answer

Regulating banks

Question 4

Why does the Federal Reserve increase interest rates?

Accepted Answer

To reduce inflation

Answer

To encourage spending

Answer

To increase inflation

Answer

To decrease unemployment

Question 5

Which of the following is a benefit of the Federal Reserve's role in the economy?

Accepted Answer

Stable prices

Answer

Low unemployment

Answer

Increased trade

Answer

Reduced government debt

Question 6

What is the main job of the Federal Reserve?

Accepted Answer

Controlling the amount of money in the country

Answer

Keeping banks safe and following the rules

Answer

Printing money

Question 7

What does the Federal Reserve do to help keep the U.S. economy stable?

Accepted Answer

Set interest rates

Answer

Print more money

Answer

Give loans to businesses

Answer

Set taxes

Question 8

How does the Federal Reserve help keep the U.S. economy healthy?

Accepted Answer

Makes sure banks have enough money to lend

Accepted Answer

Sets interest rates

Answer

Prints money

Question 9

The Federal Reserve has a nickname. What is it?

Accepted Answer

The Fed

Answer

The Treasury

Answer

The Central Bank

Answer

The Money Factory

Question 10

Which board sets interest rates?

Accepted Answer

The Federal Open Market Committee

Answer

The Board of Governors

Answer

The Monetary Policy Committee

Answer

The Fiscal Policy Committee

Question 11

What is the name of the central bank of the United States that helps keep the economy stable?

Accepted Answer

The Federal Reserve

Answer

The Central Bank

Answer

The Treasury Department

Answer

The Securities and Exchange Commission

Question 12

Which of these is NOT something the Federal Reserve does?

Accepted Answer

Managing the stock market

Answer

Setting interest rates

Answer

Regulating banks

Answer

Printing money

Question 13

When interest rates are low, borrowing money is:

Accepted Answer

Less expensive

Answer

More expensive

Answer

The same price

Answer

Not possible

Question 14

What is the main reason we have the Federal Reserve?

Accepted Answer

To make the economy more stable

Answer

To make money for the government

Answer

To stop inflation

Answer

To protect consumers

Question 15

The Federal Reserve is a type of:

Accepted Answer

Government agency

Answer

Private company

Answer

Non-profit organization

Answer

International organization

Question 16

What is the most important job of the Federal Reserve?

Accepted Answer

To help the economy stay healthy

Answer

To make money

Answer

To print money

Answer

To give money to banks

Question 17

Who is the boss of the Federal Reserve?

Accepted Answer

The Chairman of the Board of Governors

Answer

The President

Answer

The Secretary of the Treasury

Answer

The Speaker of the House

Question 18

What is the main goal of the Federal Reserve?

Accepted Answer

To keep prices stable, help the economy grow, and make sure interest rates are not too high or too low

Answer

To create as many jobs as possible

Answer

To make sure the stock market always goes up

Answer

To keep the value of the U.S. dollar strong

Question 19

How does the Federal Reserve talk to people?

Accepted Answer

Through press releases, speeches, and reports

Answer

On TV and radio news

Answer

On social media

Answer

By sending emails

Question 20

When was the Federal Reserve started?

Accepted Answer

1913

Answer

1863

Answer

1789

Answer

1945

Question 21

What is the name of the building where the Federal Reserve works?

Accepted Answer

The Eccles Building

Answer

The White House

Answer

The Capitol Building

Answer

The Pentagon

Question 22

Which of these is NOT something the Federal Reserve does?

Accepted Answer

Collecting taxes

Answer

Setting interest rates

Answer

Regulating banks

Answer

Printing money

Question 23

What is the name of the central bank of the United States?

Accepted Answer

The Federal Reserve

Answer

The Treasury Department

Answer

The White House

Answer

The Pentagon

Question 24

What is a Federal Reserve note?

Accepted Answer

A paper bill

Answer

A coin

Answer

A government bond

Answer

A credit card

Question 25

What is the nickname for the Federal Reserve?

Accepted Answer

The Fed

Answer

The Central Bank

Answer

The Treasury

Answer

The Mint

Question 26

What are the tools the Federal Reserve uses to control the economy?

Accepted Answer

Interest rates, bank regulations, and buying and selling government bonds

Answer

Taxes, spending, and trade agreements

Answer

Price controls, rationing, and subsidies

Answer

Printing money, setting lending limits, and regulating the stock market

Question 27

What is a regional Federal Reserve bank?

Accepted Answer

One of many banks that are part of the Federal Reserve System

Answer

The main office of the Federal Reserve System

Answer

A private bank that works with the Federal Reserve

Answer

A government agency that regulates banks

Question 28

How is the Federal Reserve similar to and different from other central banks around the world?

Accepted Answer

The Federal Reserve sets interest rates and regulates banks in the United States, like most central banks do in their countries.

Answer

The Federal Reserve is the only central bank in the world.

Answer

The Federal Reserve has more power than any other central bank in the world.

Question 29

How is the Federal Reserve different from other government agencies?

Accepted Answer

It is independent from political influence.

Answer

It is controlled by the President.

Answer

It is a part of the Treasury Department.

Answer

It is directly elected by the people.

Question 30

What is the most important job of the Federal Reserve?

Accepted Answer

To control interest rates

Answer

To print money

Answer

To check on banks

Answer

To collect taxes

Question 31

Which of these is NOT a duty of the Federal Reserve?

Accepted Answer

Collecting taxes

Answer

Setting interest rates

Answer

Printing money

Answer

Checking on banks

Question 32

What's the main reason we check on banks?

Accepted Answer

For all of these reasons.

Answer

To make sure they are safe and strong.

Answer

To stop money problems.

Answer

To protect people who use banks.

Question 33

Where is the main office of the Federal Reserve?

Accepted Answer

New York City

Answer

Washington, D.C.

Answer

Chicago

Answer

San Francisco

Question 34

What is the Federal Reserve often called?

Accepted Answer

The Central Bank

Answer

The People's Bank

Answer

The Big Bank

Question 35

Which is NOT a responsibility of the Federal Reserve?

Accepted Answer

Collecting taxes

Answer

Printing money

Answer

Setting interest rates

Question 36

Why might the Federal Reserve raise interest rates?

Accepted Answer

To slow down the economy

Answer

To speed up the economy

Answer

To keep the economy the same

Question 37

What is the name of the most important bank in the United States?

Accepted Answer

Federal Reserve

Answer

United States Bank

Answer

National Bank

Answer

Central Bank

Question 38

Which of these is NOT something the Federal Reserve does?

Accepted Answer

Collects taxes

Answer

Sets interest rates

Answer

Controls banks

Answer

Prints money

Question 39

What is the name of the bank that controls the money supply in the United States?

Accepted Answer

The Federal Reserve

Answer

The Federal Bank

Answer

The National Bank

Answer

The Central Bank

Question 40

How is the Federal Reserve related to the US government?

Accepted Answer

It is independent

Answer

It is controlled by the President

Answer

It is controlled by Congress

Answer

It is not related to the US government

Question 41

Which of these is NOT a responsibility of the Federal Reserve?

Accepted Answer

Setting tax rates

Answer

Setting interest rates

Answer

Supervising banks

Answer

Printing money

Question 42

What is the main goal of the Federal Reserve's monetary policy?

Accepted Answer

To keep prices stable

Answer

To create jobs

Answer

To raise interest rates

Answer

To stabilize the economy

Question 43

Who is the United States' main bank?

Accepted Answer

Federal Reserve

Answer

Central Bank of America

Answer

United States Bank

Answer

Treasury Department

Question 44

What happens when the Federal Reserve raises interest rates?

Accepted Answer

Borrowing money becomes more costly

Answer

Borrowing money becomes cheaper

Answer

More money is in use

Answer

Less money is in use

Question 45

What happens when there is inflation?

Accepted Answer

Things cost more

Answer

Things cost less

Answer

The economy grows faster

Answer

The economy grows slower

Question 46

What is the name of the central bank in the United States?

Accepted Answer

Federal Reserve

Answer

Bank of America

Answer

Treasury

Answer

The Mint

Question 47

The Federal Reserve has many important tasks. Which of these is NOT something that the Federal Reserve does?

Accepted Answer

Collect taxes

Answer

Set interest rates

Answer

Regulate banks

Answer

Print money

Question 48

What is the nickname for the Federal Reserve?

Accepted Answer

The Fed

Answer

The Bank

Answer

The Treasury

Answer

The Money House

Question 49

What does the Federal Reserve do?

Accepted Answer

Prints money

Answer

Fixes broken cars

Answer

Cooks food

Answer

Delivers mail

Question 50

What is something the Federal Reserve does NOT do?

Accepted Answer

Gives money to people

Answer

Prints money

Answer

Helps fix the economy

Answer

Makes sure banks are safe

Question 51

Who is like the boss of the Federal Reserve?

Accepted Answer

Jerome Powell

Answer

Mrs. Smith

Answer

The President of the United States

Answer

Mr. Rogers

Question 52

Why does the Federal Reserve make banks keep some money?

Accepted Answer

To make sure they have enough money to give to people who want to borrow

Answer

To make it harder for banks to lend money

Answer

To make less money in the world

Answer

To make more money in the world

Question 53

What does the Federal Reserve do when it buys or sells special papers from the government?

Accepted Answer

Changes how much money is in the world

Answer

Changes interest rates

Answer

Changes how much banks can lend

Answer

Changes how much the government can spend

Question 54

What is the name of the central bank of the United States?

Accepted Answer

The Federal Reserve

Answer

The Bank of America

Answer

The Central Bank of the United States

Answer

The Treasury Department

Question 55

What is the number one job of the Federal Reserve?

Accepted Answer

To make it more or less expensive to borrow money

Answer

To print paper and coins

Answer

To make sure banks are safe and fair

Answer

To collect taxes

Question 56

What is the main tool that the Federal Reserve uses to change the economy?

Accepted Answer

Changing the interest rates

Answer

Buying and selling

Answer

Printing more money

Answer

Raising and lowering taxes

Question 57

How does the Federal Reserve change interest rates?

Accepted Answer

By buying and selling bonds

Answer

By giving money to banks

Answer

By changing the reserve requirement

Answer

By raising and lowering taxes

Question 58

Who is in charge of the money in the United States?

Accepted Answer

The Federal Reserve

Answer

The President

Answer

The Congress

Answer

The Treasury Department

Question 59

What is NOT a job of the Federal Reserve?

Accepted Answer

Raising taxes

Answer

Keeping prices stable

Answer

Creating new money

Answer

Making sure banks are safe

Question 60

Is the Federal Reserve controlled by the government?

Accepted Answer

No

Answer

Yes

Question 61

How does the Federal Reserve control interest rates?

Accepted Answer

Buying and selling bonds

Answer

Printing more money

Answer

Changing tax laws

Answer

Adjusting government spending

Question 62

When was the Federal Reserve created?

Accepted Answer

1913

Answer

1945

Answer

1971

Answer

2001

Question 63

What is the central bank of the United States?

Accepted Answer

The Federal Reserve

Answer

The Bank of America

Answer

The Treasury Department

Answer

The Securities and Exchange Commission

Question 64

What is inflation?

Accepted Answer

A rise in the overall price level of goods and services

Answer

A decrease in the overall price level of goods and services

Answer

A rise in the interest rate

Answer

A decrease in the money supply