1. The federal reserve conducts fiscal policy to manage inflation and maximize employment true, false
2. How many federal reserve banks are there across the united states

12

3. The federal reserve has various tools to impact the economy, which one(s) are listed below

Raising or lowering the prime lending rates

Raising or lowering the discount rate

Conducts open market operations

Both A and C

Both B and C

4. The fed reserve chairman is chosen by the president and is responsible for carrying out the presidents economic policies? True false
5. Commercial banks make money primarily by
   1. Lending money and taking deposits
   2. Taking deposits and borrowing money
   3. Lending money and investing in securities
   4. Off balance sheet activities and lending
   5. None of the above
6. Which is not true regarding community banks
   1. They are typically locally owned and managed
   2. Lending decisions are made locally
   3. Community banks are not managed to make a profit
   4. Deposits are typically used to lend in the community where the bank is located
   5. Employees typically live in the community where the bank is located
7. Investment banks are able to offer higher loan rates and lower deposit rates because they do no have brick and mortar locations true false
8. which of the following is or are true about savings and loan association
   1. the number of s&l have decreased since the 1990s
   2. savings and loan associations are often mutually owned
   3. they primarily lend to businesses
   4. a and b are true
   5. all of the above are true
9. credit unions are similar to banks in that they take deposit and lend money true false
10. which answer below is not true about credit unions
    1. credit unions are owned by their members
    2. credit unions have no limitation on how much money they can lend to businesses
    3. credit unions dont pay taxes because they are not for profit institutions
    4. customers are called members
    5. all of the above are true
11. some of the largest credit unions rival the largest commercial banks in size as measured by assets and deposits true false
12. one main difference between credit unions and commercial banks is the amount of deposit insurance each unique account is insured for true false
13. investment banks are different from commercial banks in that they
    1. act as an intermediary between a securities issuer and the investing public
    2. facilitate mergers and corporate reorganizations
    3. lend large sums of money to the largest corporations
    4. a and b only
    5. all of the above
14. a mutual fund company is a good way for average investors to diversify without having to make individual stock buy and sell decisions true false
15. insurance companies of which of the following
    1. transfer risk and loss
    2. sell insurance policies for a premium
    3. determine premium based on the amount of risk
    4. may provide flood insurance
    5. all of the above