Name_________________________
Economics
Federal Reserve System
Period-
Directions: Go to the Fed 101 Website ( http://www.federalreserveeducation.org/fed101/index.htm ) and
answer the following questions.
History
1.
Who was allowed to issue paper money during the 1800’s?
2.
Why did some people lose faith in the banking system before the Federal Reserve System was in
place?
3.
When was the Federal Reserve Act passed, and which U.S. President signed it into law?
4.
What are the “checks and balances” in place when a Fed governor is appointed to the board?
5.
What are the three primary roles of the 12 Federal Reserve Banks?
Structure
Monetary Policy
6.
What is the primary focus of monetary policy?
7.
What decision does the Federal Open Market Committee (FOMC) make when it meets?
8.
What economic conditions may lead to inflation?
Bank Supervision
9.
Who establishes laws that govern the supervision and regulation of banking institutions that
operate in the U.S.?
10. Why does the Fed attempt to make banks both safe and sound?
11. What are Fed bank examiners looking for when they examine a bank?
Financial Services
12. What is the Fed’s role in the U.S. payments system?
13. Why is the Fed considered a banker’s bank?
14. Why is the Fed considered the government’s bank?
Fed Today
15. What do you think the Fed’s mission is?
16. Why should other central banks interested in how the Fed operates?