Federal Reserve Quiz 12 (5 MCQs)

Quiz Instructions

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1. Which of the following is not a primary function of the Federal Reserve?

Correct Answer: B) Providing debt reduction ideas.

2. Banks would be expected to minimize holding excess reserves because this practice is:

Correct Answer: B) Not profitable.

3. All of the following are roles And responsibilities of the FR system except

Correct Answer: D) Taking the money away from people.

4. If the Central Bank wants to increase the amount people spend it could .....

Correct Answer: C) Lower interest rates.

5. The relationship between risk and return in investing can be stated as:

Correct Answer: B) Higher risk indicates higher potential returns.