This quiz works best with JavaScript enabled. Home > Economics > Monetary > Federal Reserve > Federal Reserve – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If we did not have money, we would have to ....., or trade for something of equal worth. A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: A) Barter. 2. Which part of the Federal Reserve System writes regulations that make commercial banks financially sound and make the nation economically strong? A) Free Open Market Committee. B) Presidents of the Federal Reserve Banks. C) Board of Governors. D) Economists. Show Answer Correct Answer: C) Board of Governors. 3. What would be a reasonable monetary policy if the economy was in a recession? A) Cut taxes. B) Reduce the money supply. C) Raise taxes. D) Increase the money supply. Show Answer Correct Answer: D) Increase the money supply. 4. What is the Purpose of the board of governors? A) To provide money. B) To provide education. C) To provide housing. D) To provide leadership. Show Answer Correct Answer: D) To provide leadership. 5. Who determines monetary policy? A) President. B) Federal Trade Commission. C) House of Representatives. D) Federal Open Market Committee. Show Answer Correct Answer: D) Federal Open Market Committee. 6. What kind of vote is needed to confirm an appointment to the Federal Reserve? A) Filibuster-proof 60. B) Three Fourths. C) Two Thirds. D) Simple majority. Show Answer Correct Answer: D) Simple majority. 7. Why does the Fed go to a tight money policy when the economy is expanding too quickly? A) To make loans easy and cheap. B) To control inflation. C) To encourage businesses to hire more people. D) They want people to spend more money. Show Answer Correct Answer: B) To control inflation. 8. Which type of voter cares most about the economic record of an incumbent president? A) Low information. B) Prospective. C) Retrospective. D) Party line. Show Answer Correct Answer: C) Retrospective. 9. Proportional tax on individual income:every one pays the same percentage A) Intergovernmental revenue. B) Excise tax. C) National debt. D) Flat tax. Show Answer Correct Answer: D) Flat tax. 10. Fiscal policy is carried out by: A) Congress and the President. B) The Federal Reserve. C) The PA Reserve Bank. D) The United Nations. Show Answer Correct Answer: A) Congress and the President. 11. US notes are designed and printed by the A) Bureau of Engraving and Printing. B) Note Production Foundation. C) Comptroller of Currency. D) Currency Product Office. Show Answer Correct Answer: A) Bureau of Engraving and Printing. 12. Using money as a standardized metric that allows us to measure the relative value of things describes which function of money? A) Medium of exchange. B) Store of value. C) Measure of value/unit of account. D) None of the above. Show Answer Correct Answer: C) Measure of value/unit of account. 13. Which of the following is NOT part of the Federal Reserve A) The 12 Reserve Banks. B) FOMC-Federal Open Market Committee. C) The FDIC-Federal Deposit Insurance Corporation. D) The Board of Governors. Show Answer Correct Answer: C) The FDIC-Federal Deposit Insurance Corporation. 14. Which of the following is an example of a Private Financial Institution? A) Best Buy. B) Walmart. C) The Federal Reserve. D) Wells Fargo. Show Answer Correct Answer: D) Wells Fargo. 15. An effective tax is one o that exhibits one or more of the following characteristics. A) Simplicity. B) Equity. C) Efficiency. D) All of the other three. Show Answer Correct Answer: D) All of the other three. 16. Paper money that has no intrinsic value is referred to as A) Curved money. B) Commodity money. C) Federal money. D) Fiat money. Show Answer Correct Answer: D) Fiat money. 17. Which of these was not a result of historically high inflation of the 1970s? A) Increase in consumer and producer prices. B) High oil prices. C) Doubling of the federal debt. D) Increased unemployment. Show Answer Correct Answer: C) Doubling of the federal debt. 18. The Federal Reserve System was officially established in A) 1811. B) 1836. C) 1913. D) 1790. Show Answer Correct Answer: C) 1913. 19. ..... accept deposits from depositors and lend money to businesses and consumers. A) Financial institutions. B) Federal Reserve System. C) District banks. D) None of above. Show Answer Correct Answer: A) Financial institutions. 20. Which financial mogul intervened to help stabilize the economy during the financial panics in the early 1900's? A) Henry Ford. B) Robert Morris. C) J.P. Morgan. D) John Rockefeller. Show Answer Correct Answer: C) J.P. Morgan. 21. The #1 source of money that banks have at their disposal to loan out: A) The Federal Reserve. B) Other Banks. C) The Savings of Depositers. D) None of above. Show Answer Correct Answer: C) The Savings of Depositers. 22. We are in a recession. Factory orders are down, and the economy appears to be slumping. What should the Fed do? A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: B) Easy Money. 23. How many Federal Reserve Banks are there? A) 6. B) 10. C) 12. D) None of above. Show Answer Correct Answer: C) 12. 24. As the bank for banks, which of these is NOT a service provided by the Federal Reserve? A) Check collection. B) Electronic transfers. C) Foreign currency exchange. D) Distributing and receiving cash and coin. Show Answer Correct Answer: C) Foreign currency exchange. 25. Percentage of deposits that the Fed requires banks to hold back and not lend outThis is the money kept in the vault. A) Fed Fund Rate. B) Reserve Requirement Rate. C) Discount Rate. D) None of above. Show Answer Correct Answer: B) Reserve Requirement Rate. 26. Who provides "advise and consent" on nominations to the Federal Reserve board of Governors? A) Just the House. B) Just the Senate. C) Both the House and Senate. D) Only the President's Cabinet. Show Answer Correct Answer: B) Just the Senate. 27. Assume a bank has total deposits of $ 100, 000 and $ 10, 000 is set aside to meet reserve requirements of the Fed. Its required reserve ratio is: A) $ 10, 000. B) 10%. C) 0.1%. D) 1%. Show Answer Correct Answer: B) 10%. 28. The buying and selling of government securities by the Federal Reserve to alter the money supply is called ..... A) Open market operations. B) Monetarism. C) Check clearing. D) Money multiplier. Show Answer Correct Answer: A) Open market operations. 29. What can the Federal Reserve do to help the economy grow? A) Lower taxes. B) Sell more bonds. C) Raise the reserve requirement. D) Lower the discount rate. Show Answer Correct Answer: D) Lower the discount rate. 30. The interest rate that the Federal Reserve charges for loans to commercial banks is called the ..... A) Discount Rate. B) Reserve Requirement. C) FOMC. D) None of above. Show Answer Correct Answer: A) Discount Rate. ← PreviousNext →Related QuizzesMonetary QuizzesEconomics QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 5Federal Reserve Quiz 6Federal Reserve Quiz 7Federal Reserve Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books