What is the Fed? - Structure Quiz Question Title 1. How is the Federal Reserve funded? The Federal Reserve is funded primarily through an appropriation from the U.S. Treasury. The Federal Reserve is self-funded through interest it earns on securities and loans, and fees. The Federal Reserve is funded primarily through an appropriation from the U.S. Congress. The Federal Reserve is funded through appropriations from both the U.S. Congress and the U.S. Treasury. Question Title 2. How often does the Federal Open Market Committee (FOMC) generally meet? 6 times a year Monthly 8 times a year Quarterly Question Title 3. The Federal Reserve Board of Governors members serve 14-year terms. Why are their terms so long? To help keep them independent of political pressure. To help attract qualified candidates. To allow them to serve as many years as possible under the same U.S. president. To experience as many economic cycles as possible during their term. Question Title 4. After the Great Recession, how did regulatory reform as a result of the Dodd-Frank Act change the structure of the Federal Reserve System? It added a second chairman to oversee the functions of the Federal Open Market Committee. It made both the Board of Governors and the Reserve Banks centralized, government agencies reporting directly to the U.S. President. It added a second vice chairman position to oversee bank supervision and regulation responsibilities. It increased the number of Reserve Bank locations for increased bank supervision. Question Title 5. What is the main function of the Federal Open Market Committee (FOMC)? To regulate banks and other depository institutions. To oversee the day-to-day operations of the Federal Reserve System. To ensure free and open trade in the global market. To carry out monetary policy. Question Title 6. How is the Federal Reserve System a two-part structure? The Board of Governors and the 12 Reserve Banks are decentralized, non-governmental agencies. The Board of Governors and each Reserve Bank are organized as centralized government agencies. The Board of Governors is organized as a centralized government agency, and the 12 Reserve Banks are decentralized, non-government entities. The Board of Governors is organized as a decentralized, non-government agency and the 12 Reserve Banks are organized as central, government entities. Question Title 7. The Chairman of the Board of Governors also serves as chairman of which of the following? Federal Deposit Insurance Corporation Federal Open Market Committee U.S. Office of Management and Budget Securities and Exchange Commission Question Title 8. How many Districts are there in the Federal Reserve System? Ten One per state Thirteen Twelve SUBMIT