Question

1. Central bank responsibilities do not include:
	a. Providing mortgages to consumers
	b. Acting as the government's bank or fiscal agent
	c. Setting monetary policy
	d. Acting as a lender of last resort (emergency lending)

2. A governor on the Board of Governors is nominated by:
	a. The Chair of the Fed
	b. The Senate Banking Committee
	c. Regional Fed Presidents
	d. The President of the United States

3. There is a regional Federal Reserve Bank in each of the cities except:
	a. New York
	b. Atlanta
	c. St. Louis
	d. Cincinnati

4. What is the only government entity that can order currency to be printed?
	a. Federal Reserve Board of Governors
	b. The U.S. Treasury’s Bureau of Engraving and Printing
	c. The Mint
	d. Department of Commerce

5. Can a bank deposit cash at a regional Federal Reserve Bank?
	a. Yes
	b. No

6. The U.S. central bank, The Federal Reserve, was created in:
	a. 1776
	b. 1907
	c. 1913
	d. 1933

7. As part of the Fed’s Bank Supervision responsibilities, the Fed examines institutions for:
	a. Consumer protection mandate compliance
	b. Safety and soundness
	c. Answers (a.) and (b.)
	d. None of the above

8. The FOMC's dual mandate (two goals) are:
	a. Low inflation and healthy banks
	b. Price stability and maximum employment
	c. No inflation and low borrowing costs
	d. High inflation and low unemployment

Answer 1

1. Option A

Explanation: The central bank does not deal with consumers.

2. Option D

Explanation: The President nominates the governor or board of governors.