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