This quiz works best with JavaScript enabled. Home > Economics > Monetary > Federal Reserve > Federal Reserve – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a function of the Federal Reserve System? A) To control the money supply. B) To supervise and regulate banks. C) To aid in the check clearing process. D) The fed does all of these. Show Answer Correct Answer: D) The fed does all of these. 2. The ..... is responsible for producing US coin. A) Fed Reserve BAnk. B) Coin institute. C) US mint. D) Secretary of states office. Show Answer Correct Answer: C) US mint. 3. Reserve banks assist the treasury in ..... A) Sending trucks of cash to smaller banks. B) Issuing and redeeming securities. C) Sending trucks of money to banks to prevent failure. D) Stopping the domino effect by giving customers of failing banks a bank to use. Show Answer Correct Answer: B) Issuing and redeeming securities. 4. The Fed maintains the supply of money, but the government agency responsible for printing money is the A) Congress. B) The President. C) Bureau of the Mint. D) Federal Reserve. Show Answer Correct Answer: C) Bureau of the Mint. 5. Decisions regarding purchases and sales of government securities by the Fed are made by the: A) FDIC. B) Federal Open Market Committee. C) Discount Committee. D) Federal Funds Committee. Show Answer Correct Answer: B) Federal Open Market Committee. 6. Which of the following policy actions by the Fed would cause the money supply to decrease? A) An open-market purchase. B) A decrease in required reserve ratios. C) An increase in the discount rate. D) None of these. Show Answer Correct Answer: C) An increase in the discount rate. 7. Which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks? A) The Monetary Control Act. B) The Thrift Bailout Bill. C) The Equal Credit Opportunity Act. D) The Federal Reserve Act. Show Answer Correct Answer: A) The Monetary Control Act. 8. The Central bank of the US is called A) State Reserve. B) The Federal Reserve. C) Government Reserve. D) National Reserve. Show Answer Correct Answer: B) The Federal Reserve. 9. The characteristics of money include all of the following except A) Portable. B) Durable. C) Transferable. D) Divisible. Show Answer Correct Answer: C) Transferable. 10. The largest US note ever printed was worth A) $ 10, 000. B) $ 50, 000. C) $ 100, 000. D) $ 20, 000. Show Answer Correct Answer: C) $ 100, 000. 11. Which of the following is an example of federal mandatory spending? A) Social Security. B) Income security. C) Medicare. D) National defense. Show Answer Correct Answer: A) Social Security. 12. If the Federal Reserve wants banks to loan out more money and stimulate the economy, what could it do? A) Raise the discount rate. B) Lower the Reserve Requirements. C) Increase the number of district banks. D) Reduce the money supply. Show Answer Correct Answer: B) Lower the Reserve Requirements. 13. Which Federal Reserve Bank always has voting rights on the FOMC? A) Kansas City. B) Chicago. C) New York. D) Dallas. Show Answer Correct Answer: C) New York. 14. . Which of these is a feature of open market operations? A) The Fed lowers the prime interest rate. B) The Fed purchases member bank reserves. C) The Fed sells government securities. D) The Fed raises the reserve requirement. Show Answer Correct Answer: C) The Fed sells government securities. 15. Which of these cities do not have a Federal Reserve Office? A) San Diego. B) Minneapolis. C) New York. D) Chicago. Show Answer Correct Answer: A) San Diego. 16. Fill in the blank:The Federal Reserve regulates banks to ensure the soundness of the banking system and safety of ..... A) Stocks. B) Interest. C) Deposits. D) Loans. Show Answer Correct Answer: C) Deposits. 17. In the month following the September 11th terrorist attack, GDP fell from 1.6% to ..... A) 1.2%. B) 1.5%. C) 1.0%. D) 1.1%. Show Answer Correct Answer: D) 1.1%. 18. When did Supply Side Economics become more popular? A) In the 1910s because of the US trade deficit. B) In the 1990s because of Globalization. C) In the 1930s because of high unemployment. D) In the 1970s because of high inflation. Show Answer Correct Answer: D) In the 1970s because of high inflation. 19. Widespread, massive unemployment ..... Severe drop in GDP ..... Very little investment ..... Inflation is very low ..... All of these describe which stage in the business cycle. A) Recession/Contraction. B) Expansion/Recovery. C) Depression/Trough. D) Peak. Show Answer Correct Answer: C) Depression/Trough. 20. What year was the Federal Reserve Act passed? A) 1813. B) 1853. C) 1963. D) 1913. Show Answer Correct Answer: D) 1913. 21. What is the long term goal of the Federal Reserve? A) Low inflation. B) Fast inflation. C) High inflation. D) Unstable inflation. Show Answer Correct Answer: A) Low inflation. 22. The First Bank of the United States was charted in ..... A) 1855. B) 1683. C) 1791. D) 1897. Show Answer Correct Answer: C) 1791. 23. The CPI is up, and housing starts are at a fifteen-year high A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: A) Tight Money. 24. How many districts make up the Federal Reserve system? A) 18. B) 12. C) 15. D) 10. Show Answer Correct Answer: B) 12. 25. You go to buy a car and interest rates are sky high and the bank won't loan you the money. What is going on? A) Inflation. B) Recession-Bank is practicing tight money policies. C) Recovery-Bank is practicing expansionary policies. D) None of above. Show Answer Correct Answer: B) Recession-Bank is practicing tight money policies. 26. Which type of voter below would be most likely to ONLY vote for candidates from one party? A) Straight ticket party line voter. B) Prospective. C) Apathetic low-information voter. D) Retrospective. Show Answer Correct Answer: A) Straight ticket party line voter. 27. The Federal Reserve has three tools at their disposal. Which of the following is NOT a tool of monetary policy? A) Changes in reserve requirements. B) Changes to foreign policy. C) Changes in interest rates. D) Open-market operations. Show Answer Correct Answer: B) Changes to foreign policy. 28. The Governors most important function is participating in the ..... . A) Helping the President of the United States. B) Election of Reserve Bank presidents. C) Federal Open Market Committee. D) Representing members of the Senate. Show Answer Correct Answer: C) Federal Open Market Committee. 29. What is the most important responsibility of the Board of Governors of the Federal Reserve? A) Deciding what denominations of money to produce each year. B) Helping banks work out disputes with other banks. C) Participating in the FOMC. D) Providing FASFA information to students. Show Answer Correct Answer: C) Participating in the FOMC. 30. An economist might argue that a progressive income tax is effective because it is A) Simple. B) Equitable. C) Complex. D) Profitable. Show Answer Correct Answer: B) Equitable. ← PreviousNext →Related QuizzesMonetary QuizzesEconomics QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 6Federal Reserve Quiz 7Federal Reserve Quiz 8Federal Reserve Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books