How Much Do You Know About the Federal Reserve System? 1. The Federal Reserve System is not an Agency of the Federal Government? True False 2. The Fed has the exclusive authority to print and issue all U.S. currency? True False 3. Interest on money loaned by the Fed to its member banks is used to reduce the federal debt? True False 4. The Fed is restricted to an amount of currency it can print by requiring an equal amount of gold held as reserves? True False 5. The books of the Fed are audited on an annual basis and are of public record? True False 6. The Fed has been responsible for loan losses such as the banking debacle of the late 1980's and the housing scam of 2001-2007? True False 7. Neither the U.S. President, who appoints the FRS chairman, nor the FRS Chairman acts independently of outside influence? True False 8. The Fed sets interest rates? True False 9. The Fed confines its monetary activities strictly to the U.S.? True False 10. Americans can benefit from an understanding of how the Fed works? True False 11. The Federal Reserve System, initiated in 1913, was not the first "central bank" to control U.S. monetary policy? True False 12. President Thomas Jefferson believed America should be controlled by a central bank. True False