Submitted by Mark Taylor, Australia

Answer True or False

1. The Federal Reserve System is an Agency of the Federal Government?

2. The Fed has the exclusive authority to print and issue all U.S. currency?

3. Interest on money loaned by the Fed to its member banks is used to reduce the Federal Draft?

4. The Fed is restricted to an amount of currency it can print by a specified amount of gold held as reserves?

5. The books of the Fed are audited on an annual basis and are of public record?

No peeking at the answers yet

6. The Fed is responsible for loan losses such as the banking debacle of the late 1980's?

7. Although the President appoints the chairman of the Federal Reserve Board, the Chairman acts independently?

8. The Fed sets interest rates?

9. The Fed confines its monetary activities strictly to the U.S.?

10. Americans can benefit from an understanding of how the Fed works?


Okay, NOW you can look at the answers.