1 . Member banks of the Federal Reserve System include:

Multiple Choice

• only nationally chartered banks.
• all state chartered banks with assets exceeding $100 million.
• nationally chartered banks and state chartered banks that decide to join.
• nationally chartered banks and all state chartered banks

2 . The number of regional Federal Reserve Banks is:

Multiple Choice

• nine.
• seven.
• five.
• twelve.

3 . The lines drawn to establish Federal Reserve Districts were based on:

Multiple Choice

• solely population distribution in 1914.
• solely economic forces that existed in 1914.
• economic and political forces that existed in 1914.
• economic and political forces as well as population distribution in 1914.

4 . The Reserve Banks of the Federal Reserve System are owned by:

Multiple Choice

• the taxpayers in their districts.
• the U.S. Treasury.
• the Board of Governors.
• the commercial banks in their districts.

5 . Each of the Reserve Banks has a president who is:

Multiple Choice

• appointed by the bank's board of directors but approved by the board of governors.
• appointed by the board of governors but approved by the bank's board of directors.
• elected by the commercial banks in their district.
• selected from the Board of Directors.

6 . In its role as the bankers' bank, the Federal Reserve performs all of the following services, except:

Multiple Choice

• collecting and making available data on business conditions.
• making discount loans.
• managing U.S. Treasury borrowings.
• clearing paper checks and transferring funds electronically.

7 . Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:

Multiple Choice

• managing the float.
• discount buying.
• reserve adjustment
• none of the above

8 . Congress created the Federal Reserve System

Multiple Choice

• to serve as a lender of last resort.
• to process the receipt of taxes received by the Internal Revenue Service.
• to regulate the value of the U.S. dollar against foreign currencies.
• all of the above

9 . To make sure the U.S. President cannot unduly influence the Board of Governors:

Multiple Choice

• the terms of the governors are staggered.
• the law prevents a resident from appointing more than one governor.
• the terms of the governors are ten years long.
• only three governors can be replaced in any one year.