Chair the Fed Quiz Question Title 1. Who determines monetary policy in the U.S.? Primary Dealers The U.S. Department of the Treasury The U.S. President The Federal Open Market Committee (FOMC) Question Title 2. What is inflation? The percent change in the general price level of goods and services The percent change in the 30-year mortgage rate The percent change in output Money supply growth Question Title 3. How is the unemployment rate calculated? (# of unemployed) / (U.S. population) (# of unemployed) / (# of employed + # of unemployed) (# of unemployed) / (civilian population 16 years and older) (# of employed) / (U.S. population) Question Title 4. Which key interest rate do the Fed’s policymakers control? The unemployment rate The federal funds rate The inflation rate The 3-month Treasury bill rate Question Title 5. What is the Fed’s “dual mandate”? To maintain zero inflation and promote minimum employment To maintain stable prices and promote maximum employment To maintain low interest rates and maximize production To maintain stable prices and promote maximum unemployment Question Title 6. What is the “real” fed funds rate? The nominal fed funds rate minus the unemployment rate The 1-year Treasury note rate The nominal fed funds rate minus inflation The effective fed funds rate Question Title 7. What is the Fed’s longer-run inflation target? 5% 2% 0% -1% Question Title 8. What is the federal funds rate? The rate at which the general price level of goods and services changes The interest rate at which homeowners can borrow mortgages The interest rate at which depository institutions lend balances to each other overnight The yield for U.S. Treasury bonds Question Title 9. During which time period did we experience our last economic recession? 2007-2009 2000 2007-present 1929-1933 Question Title 10. Who is the current Chair of the Federal Reserve System? Jerome Powell Janet Yellen Ben Bernanke Donald Trump SUBMIT