What are the seven functions of the Federal Reserve System? Which one is most important?
What will be an ideal response?
The seven functions are: (1) issuing currency; (2) setting reserve requirements and holding required reserves of banks and thrift institutions; (3) lending money to banks and thrifts; (4) collecting and clearing checks for banks and thrifts; (5) serving as the fiscal agent for the U.S. government; (6) supervising the operation of member banks; and (7) controlling the money supply. Controlling the money supply to meet the needs of the economy is the most important function.
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Refer to Figure 2-1. ________ is (are) technically efficient
A) Point A B) Point B C) Point C D) Points B and C
Members of the Board of Governors serve
A) fourteen year terms. B) four-year terms. C) at the discretion of the Federal Reserve Chairman. D) at the discretion of the President of the United States.