In Plain English

Glossary

Test Your Knowledge

Directions: Answer the following questions about the Federal Reserve System.

In which year did Congress create the Federal Reserve System?

	A. 1907
	B. 1913
	C. 1929
	D. 1932

That's incorrect. Congress created the Federal Reserve System in 1913.

That's correct. Congress created the Federal Reserve System in 1913.

What event convinced Congress that a central bank was necessary?
Type Your Response Here	Correct Response: The Panic of 1907 convinced Congress that a central bank was necessary to bring stability to the nation's banking system.
Question: 1—2

Which of the following are part of the Federal Reserve System? Select all that apply.

	A. The Board of Governors
	B. The Regional Reserve Banks
	C. The Federal Open Market Committee
	D. The state member banks
Check Answers

That's incorrect. The three parts of the Federal Reserve System include the Board of Governors, the Regional Reserve Banks, and The Federal Open Market Committee.

That's correct. The three parts of the Federal Reserve System include the Board of Governors, the Regional Reserve Banks, and The Federal Open Market Committee.

Discussion Board Topic: The Purpose of the Federal Reserve

Use what you have learned in this lesson to write a summary paragraph. Your paragraph should explain:

Why the Federal Reserve System was established.
When the Federal Reserve System was established.

Record your summary by clicking on the discussion board and responding to the thread titled "The Purpose of the Federal Reserve."

Conclusion

The Federal Reserve System was developed and continues to develop as an interesting blend of public and private, centralized and decentralized. As you continue through this course we will break down the structure and responsibilities to see what the Fed is and what it does.

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