Level 3,Test 1        United States Money and Monetary  System

1.  The Federal Reserve has responsibilities in the area of consumer and public affairs. Which of these is not one of their responsibilities in this area?

1.      Writing and interpreting regulations to carry out many of the major consumer  protection laws.

2.      Reviewing bank compliance with the regulations.

3.      Investigating complaints from the public about state member banks’ compliance with consumer protection laws.

4.      Addressing issues of state and federal jurisdiction.

5.      Changing the prime interest rate.

6.      Conducting community development activities.

7.       Testifying before Congress on consumer protection issues.

2.  Community affairs programs at the Board and the twelve Federal Reserve Banks promote community development and fair and impartial access to what service?

1.  Credit

2. Cash

3. Depositor information

4. Debt

3.   Most financial transactions involving consumers are covered by consumer protection laws. Which one of the following is not covered?

1. Credit, charge, and debit cards issued by financial institutions and credit cards issued by retail establishments.

2. Automated teller machine transactions and other electronic fund transfers.

3. Deposit account transactions.

4. Automobile leases.

5. Mortgages and home equity loans.

6. Opening bank accounts.

4.  Well-educated consumers are the best consumer protection in the market.

1. True

2. False

5.  The Federal Reserve responds to inquiries and complaints from the public about the policies and practices of financial institutions involving consumer protection issues. Each Reserve Bank has staff whose primary responsibility is to investigate consumer complaints about what entities?

1. Private banks

2. State member banks

3. Non banking businesses

4.  Credit unions

6. In accordance with the Community Reinvestment Act of 1977, the Federal Reserve reviews a bank’s efforts to meet the credit and community development needs of its entire community, including low income neighborhoods.

1. True

2. False

7  The Truth in Lending Act  is to ensure that consumers have adequate information about what? 

1. The Federal Reserve

2. Credit

3. The public debt

4. Federal spending

Return to Testing

Answers to this Test