Federal Reserve Bank Quiz
This quiz will test to see how much you know about our Federal Reserve Bank and how important it is to the United States.
- 1.
How many District Banks are there?
- A.
10
- B.
11
- C.
12
- D.
13
Correct Answer
C. 12Explanation
There are 12 District Banks.Rate this question:
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- 2.
What happens in the economy when interest rates rise?
- 3.
What happens in the economy when interest rates drop?
- 4.
What economic variables do the FOMC (Federal Open Market Committee) affect?
- 5.
What are two roles of the Federal Reserve Bank?
- 6.
What is the full term of a Federal Bank Board member?
- A.
13
- B.
12
- C.
11
- D.
14
Correct Answer
D. 14Explanation
The full term of a Federal Bank Board member is 14 years.Rate this question:
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- 7.
How are the Chairman and Vice Chairman appointed?
- A.
Appointed by the Senate; approved by the President
- B.
Appointed by the House of Representatives; approved by the Vice President
- C.
Appointed by the President; approved by the Senate
- D.
Appointed by the Vice President; approved by the House of Representatives
Correct Answer
C. Appointed by the President; approved by the SenateExplanation
The Chairman and Vice Chairman are appointed by the President and their appointments are approved by the Senate. This means that the President has the authority to select individuals for these positions, but their appointments must be confirmed by the Senate. This ensures a system of checks and balances, as the President cannot unilaterally appoint individuals to these important positions without the approval of the Senate.Rate this question:
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- 8.
Which District Bank does California belong to?
- A.
San Francisco
- B.
Boston
- C.
Cleveland
- D.
Kansas City
Correct Answer
A. San FranciscoExplanation
California belongs to the San Francisco District Bank because San Francisco is a major city in California and is also the headquarters of the 12th District of the Federal Reserve System, which covers the western part of the United States, including California. The San Francisco District Bank is responsible for implementing monetary policy, supervising and regulating banks, and providing financial services to banks and the public in its district.Rate this question:
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- 9.
Which of these is NOT a location of a District Bank?
- A.
Philadelphia
- B.
New Orleans
- C.
Dallas
- D.
Atlanta
Correct Answer
B. New OrleansExplanation
New Orleans is not a location of a District Bank. This is because the District Banks in the United States are part of the Federal Reserve System, which is divided into twelve districts. Each district has a main office and several branch offices, but there is no District Bank located in New Orleans. Therefore, New Orleans does not fit the criteria of being a location of a District Bank.Rate this question:
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- 10.
When and why was the Federal Reserve Bank established?
- A.
1914; World War 1
- B.
1898; The Spanish- American War
- C.
1913; The Panic of 1907
- D.
1930; The Great Depression
Correct Answer
C. 1913; The Panic of 1907Explanation
The correct answer is 1913; The Panic of 1907. The Federal Reserve Bank was established in 1913 in response to the financial crisis known as the Panic of 1907. This crisis highlighted the need for a central banking system in the United States to stabilize the economy, regulate the banking industry, and prevent future financial panics. The Federal Reserve Act was passed in 1913, creating the Federal Reserve System and granting it the authority to issue currency, set interest rates, and act as a lender of last resort to banks in times of financial stress.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Jan 19, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 05, 2010Quiz Created by
Ckute
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