“I’m the fellow who takes away the punch bowl just when the party is getting good,” one Federal Reserve Board chair famously quipped. In truth, the Fed’s mandate is to both supply monetary stimulus and withdraw it. The timing of the U.S. central bank’s moves often irritates Wall Street and politicians, but the Fed has survived criticisms and assaults on its integrity for more than 100 years. See how much you know about the history of the Fed by taking our quiz below.
1. Who has been the longest-tenured chair of the Fed Board of Governors, serving under five different U.S. presidents?
A. Alan Greenspan
B. Marriner S. Eccles
C. Paul Volcker
D. William McChesney Martin, Jr.
2. In which year did the effective Federal Funds rate reach its zenith?
3. Which Fed chair said: “Since becoming a central banker, I have learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said.”
A. Paul Volcker
B. Ben Bernanke
C. Alan Greenspan
D. Eugene R. Black
4. Which piece of legislation required the Fed chair to report to Congress twice annually on monetary policy and objectives?
A. The Bank Holding Company Act of 1956
B. The Glass-Steagall Act (1933)
C. The Monetary Control Act of 1980
D. The Humphrey Hawkins Act (1978)
5. The Fed created the Temporary Liquidity Guarantee Program in October 2008. Among other things, it:
A. Provided low-cost funding for primary broker dealers
B. Injected liquidity into the commercial paper market
C. Guaranteed newly issued senior unsecured debt of banks and thrifts
D. Authorized the purchase of preferred shares issued by nine U.S. banks
6. Which one of these cities is not the site of a regional Federal Reserve bank?
B. St. Louis
C. Richmond, Va.
7. In which year did the Federal Reserve Act become law, creating the Federal Reserve System?
8. When conferring with colleagues over email during the 2008 financial crisis, Fed Chair Ben Bernanke used which pseudonym?
A. Clive Hamilton
B. Edward Quince
C. Robert Galbraith
D. James Kenneth McManus
Answers: 1-D; 2-B; 3-C; 4-D; 5-C; 6-D; 7-A; 8-B