Question : 11.3   The Federal Reserve System 1) A public authority that provides : 1238038

11.3   The Federal Reserve System

1) A public authority that provides banking services to commercial banks and regulates financial institutions and markets is called a

A) commercial bank.

B) thrift institution.

C) central bank.

D) money market fund.

E) mint.

2) All of the following are financial institutions that accept deposits and make loans to people and businesses EXCEPT

A) commercial banks.

B) savings and loans.

C) credit unions.

D) central banks.

E) savings banks.

3) As the central bank, the Federal Reserve System provides banking services to

A) individuals and controls the quantity of money.

B) the government and the stock market.

C) foreign corporations and determines the exchange rate.

D) banks and regulates financial institutions and markets.

E) banks and determines how much the U.S. government will borrow.

4) Because the Federal Reserve System is a central bank, it provides banking services to

A) businesses only.

B) consumers and business.

C) commercial banks.

D) no one.

E) the government only.

5) The Federal Reserve System provides banking services to ________ because ________.

A) consumers and businesses; it is a central bank with responsibilities to the entire U.S. population

B) banks and businesses; it is a central bank with the primary purpose of regulating financial institutions and markets

C) commercial banks; it is a central bank with the primary purpose of regulating financial institutions and markets

D) no one; it is a central bank with the primary purpose of regulating financial markets

E) FDIC insured banks; they are the ones that have paid their membership fees and the only ones the U.S. central bank guarantees

6) The Fed is a central bank and as such

A) does business only with the federal government.

B) provides banking services to banks but not individuals.

C) provides banking services to individuals and firms.

D) does business with international organizations such as the United Nations.

E) is where the Federal Government turns when it needs to borrow.

7) What is the central bank of the United States?

A) There is no central bank in the United States.

B) The Department of Treasury

C) The Federal Reserve System

D) Each state has its own central bank, which, when all taken together, constitute the central bank of the United States.

E) The U.S. Mint

8) ________ the quantity of money in the United States.

A) The State Department regulates

B) The Department of Treasury regulates

C) The Federal Reserve System regulates

D) Commercial banks regulate

E) The President of the United States regulates

9) The Federal Reserve System is organized into

A) one large district covering the entire United States.

B) three districts, one for each of the countries in North America.

C) 12 districts, dividing up the United States.

D) 12 districts, dividing up the countries in North America.

E) 50 districts, one per state.

10) Conducting the nation’s monetary policy is the duty of the

A) Department of Commerce.

B) U.S. Treasury department.

C) Federal Reserve System.

D) Federation of Banks.

E) Federal Bank Supervisor.