The Federal Reserve Bank of San Francisco: Economic Research, Educational Resources, Community Development, Consumer and Banking Information

The Federal Reserve Bank of San Francisco

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Classroom Activity of the Month Class Activity of the Month

Teachers, watch the short video clip of the new "Open and Operating" video with your class and answer the questions below. Students need to answer all the questions before requesting their score. After scoring, students can correct their wrong answers and have the option to print out their score and answer sheet.

1. The Federal Reserve was created by Congress in 1913.

True

False

2. Liquidity means:

The availability of money

Having a lot of cash in your wallet

Water

The amount of money the Fed puts into circulation

3. The three main functions of the Fed are:

Adjusting interest rates, monitoring the payments system, and regulating financial institutions

Implementing monetary policy, regulating financial institutions, and monitoring the payments system

Adjusting interest rates, regulating financial systems, and implementing monetary policy

Implementing monetary policy, adjusting interest rates, and regulating financial institutions

4. The Federal Reserve has 15 Districts.

True

False

5. Who coordinated the Federal Reserve's response to 9/11?

Chairman Greenspan

Governor Gramlich

Vice Chairman Ferguson

Governor Olson

6. On 9/11/01, the Fed issued a short statement which read: "The Federal Reserve System is open and operating. The Discount Window is available to meet liquidity needs."

True

False

7. The payments system includes:

Cash, checks, stocks

Electronic transfers, checks, cash

Checks, electronic transfers, bonds

Cash, stocks, bonds

8. FedwireSM is a critical component of the payments system.

True

False