1. Which is the oldest central bank?

a. the Federal Reserve

b. the Bank of England

c. the Royal Bank of Scotland

d. the Reserve Bank of New Zealand

2. Deposits held by the U.S. Treasury in commercial banks are

a. tax and loan accounts

b. discount loans

c. legal reserves

d. float

3. Technically, the Federal Reserve System is owned by

a. the U.S. Treasury

b. the Department of Commerce

c. the World bank

d. commercial banks that are Federal Reserve members

4. When the Federal Open Market Committee approves its directive, it is then presented to

a. the Chairman of the Board of Governors

b. the Chairman of the Open Market Committee

c. the manager of the System Open Market Account

d. the president of the Federal Reserve Bank of New York

5. Approximately what percent of total Federal Reserve Assets are U.S. government securities?

a. 10%

b. 40%

c. 60%

d. 85%

ANSWER KEY 1b, 2a, 3d, 4c, 5d