1. The Federal Reserve is the central banking system of the United States.
2. The primary goal of the Federal Reserve is to maximize profits.
3. The Federal Open Market Committee (FOMC) is responsible for setting the discount rate.
4. The Board of Governors has seven members.
5. The Federal Reserve has 10 regional banks.
6. Open market operations are a key tool used by the Fed to influence the economy.
7. The Fed's primary goal is to prevent inflation from falling too low.
8. The Fed directly sets consumer interest rates.
9. The Federal Reserve is a government agency.
10. The Fed can change the reserve requirement to control how much banks lend.
11. Expansionary monetary policy involves lowering interest rates.
12. Contractionary monetary policy aims to increase inflation.
13. The Fed has complete control over the money supply.
14. The Federal Reserve directly controls inflation.
15. All decisions of the FOMC must be approved by Congress.
16. The Fed can only use open market operations to implement monetary policy.
17. The Federal Reserve was created in 1913.
18. The FOMC meets once a year to set monetary policy.
19. The Fed’s target inflation rate is typically around 2%.
20. The Federal Reserve only operates in Washington, D.C.
21. The Chair of the Federal Reserve is appointed for a four-year term.
22. The Fed’s tools of monetary policy include fiscal policy decisions.
23. The Fed's main goal during a recession is to stimulate the economy.
24. Commercial banks focus primarily on investment services.
25. Investment banks provide services primarily to individual consumers.
26. The FDIC insures deposits up to $250,000.
27. Deposit insurance protects against investment losses.
28. The Dodd-Frank Act was passed in response to the 2008 financial crisis.
29. The Glass-Steagall Act separates commercial and investment banking activities.
30. The FDIC was created after the 2008 financial crisis.
31. Banks primarily earn income through fees.
32. Interest rates on loans are unaffected by Federal Reserve policy.
33. Banks are required to hold a percentage of deposits in reserve.
34. Investment banks can take deposits from individual customers.
35. Commercial banks play a crucial role in managing payment systems.
36. The Great Depression was the first major U.S. banking crisis.
37. The 2008 financial crisis was caused solely by the housing bubble.
38. During a financial crisis, banks can borrow from the Federal Reserve’s discount window.
39. Bank runs were a significant cause of the Great Depression.
40. The FDIC guarantees all types of financial accounts.
41. Quantitative easing is a regulatory tool used by the FDIC.
42. The main goal of the FDIC is to ensure banks’ profitability.
43. Banks play no role in regulating the money supply.