What is the Fed? - Structure Quiz Question Title 1. How is the Federal Reserve System a two-part structure? The Board of Governors is organized as a decentralized, non-government agency and the 12 Reserve Banks are organized as central, government entities. 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 and the 12 Reserve Banks are decentralized, non-governmental agencies. Question Title 2. The Chairman of the Board of Governors also serves as chairman of which of the following? U.S. Office of Management and Budget Federal Deposit Insurance Corporation Federal Open Market Committee Securities and Exchange Commission Question Title 3. How is the Federal Reserve funded? 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. 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. Question Title 4. What is the main function of the Federal Open Market Committee (FOMC)? To ensure free and open trade in the global market. To regulate banks and other depository institutions. To carry out monetary policy. To oversee the day-to-day operations of the Federal Reserve System. Question Title 5. The Federal Reserve Board of Governors members serve 14-year terms. Why are their terms so long? 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. To help keep them independent of political pressure. To help attract qualified candidates. Question Title 6. How often does the Federal Open Market Committee (FOMC) generally meet? Monthly Quarterly 8 times a year 6 times a year Question Title 7. How many Districts are there in the Federal Reserve System? Thirteen Twelve One per state Ten Question Title 8. 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 increased the number of Reserve Bank locations for increased bank supervision. It added a second vice chairman position to oversee bank supervision and regulation responsibilities. 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. SUBMIT