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