ECONOMICS Econ 1010 Chapter 12 TestBank ­ new

The Federal Reserve System is: A. a group of twelve commercial banks. B. the central bank of the United States. C. the agency of the U.S. government that insures commercial bank deposits. D. the branch of the U.S. Treasury that keeps the U.S. gold reserves. 2. The central bank of the United States is: A. Bank of America. B. Bank of the United States. C. Bank One. D. the Federal Reserve System. 3. The Federal Reserve System first began operations in: A. 1789. B. 1865. C. 1914. D. 1934 4. The two main responsibilities of the Federal Reserve System are to ______ and to ______. A. apprehend counterfeiters; regulate the stock market B. enable banks to make affordable mortgages; control the exchange rate of the U.S. dollar C. insure bank deposits; print currency D. conduct monetary policy; oversee financial markets 5. The Federal Reserve consists of ______ regional banks, ______ governors on the Board of Governors, and ______ voting members of the Federal Open Market Committee. A. 7; 12; 12