The Federal Reserve Board has been the subject of public scrutiny since the onset of the financial crisis, with investors poring over every public statement by its members, seeking clues about the direction of monetary policy. But how much do you know about the Fed’s more distant past? Take our quiz and find out.
1. When did Congress pass the bill creating the Federal Reserve System?
2. The House co-sponsor of the bill was Carter Glass, of Glass-Steagall Act fame. Who was the Senate co-sponsor?
A. Nelson Aldrich
B. Robert Owen
C. Paul Warburg
D. William Jennings Bryan
3. Charles Sumner Hamlin was the Fed’s first chair. Which future President succeeded Hamlin in the post?
A. Franklin D. Roosevelt
B. Warren G. Harding
C. Calvin Coolidge
D. Herbert Hoover
4. The Federal Reserve Board has seven members (two seats are currently vacant). How long is a member’s full term?
A. 6 years
B. 7 years
C. 10 years
D. 14 years
5. Passed in 1978, this act requires the Fed to report to Congress on monetary policy twice a year:
A. Riegle-Neal Act
B. Humphrey-Hawkins Act
C. Garn-St. Germain Act
D. Sarbanes-Oxley Act
6. In 2001, the Fed lowered the federal funds rate 12 times, from 6.5% to:
7. Between 2004 and 2006, the Fed raised the federal funds rate 17 times, from 1% to:
8. In 1980, the Fed raised the federal funds rate to its highest-ever level of:
Source: Federal Reserve Board
Answers: 1–C; 2–B; 3–B; 4–D; 5–B; 6–B; 7–D; 8–C