2) The Federal Reserve System is controlled by ...
The Board of Governors of the Federal Reserve
The U.S. Treasury Department
The Federal Deposit Insurance Corp. (FDIC)
Congress

3) Federal Open Market Committee consists of how many members?
Five
Seven
Eleven
Twelve

4) Members of the Board of Governors of the Federal Reserve ...
Are elected by member banks for four-year terms
Are appointed by Congress for 12-year terms
Are appointed by the President for 14-year terms
Are appointed by the President for 14-year terms

5) If the FOMC decides to expand the money supply it would ...
Deliver new Federal Reserve notes to banks
Issue directions to sell government securities
Issue directions to sell government securities
Raise the discount rate to member banks

6) The relationship between bond prices and interest rates is?
When bond prices rise, interest rates rise
When bond prices fall, interest rates rise
When interest rates rise, bond prices rise
None of the above

7) What tool does the Fed rely on the most in conducting policy?
Changing the discount rate
Open market operations
Changing the required reserve ratio
Will power

8) An open market purchase of bonds by the Fed causes ...
The money supply to rise and bond prices to go up
The money supply to fall and bond prices to go up
The money supply to rise and bond prices to fall
The money supply to fall and bond prices to fall

9) What must the government do to reduce high inflation?
Increase spending and decrease the money supply
Decrease spending and increase the money supply
Decrease both spending and the money supply
Increase both spending and the money supply

10) The Federal Open Market Committee is required by law to meet at least how many times per year?
Two
Four
Six
Eight