This quiz works best with JavaScript enabled. Home > Economics > Monetary > Federal Reserve > Federal Reserve – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who must confirm nominees to chair the Federal Reserve? A) Supreme Court. B) House. C) Cabinet Secretaries. D) Senate. Show Answer Correct Answer: D) Senate. 2. Which of these exerts the most direct control over interest rates? A) The Federal Open Market Committee. B) The Federal Reserve district banks. C) The Consumer Financial Protection Bureau. D) The Board of Governors. Show Answer Correct Answer: D) The Board of Governors. 3. Which part of the Fed is considered public (government)? A) 12 Reserve Banks. B) Board of Governors. C) FOMC. D) The President. Show Answer Correct Answer: B) Board of Governors. 4. Which part of the Fed is both public (government) and private in nature? A) The President. B) The Board of Governors. C) The FOMC. D) The 12 Reserve Banks. Show Answer Correct Answer: C) The FOMC. 5. Which of the following is directly controlled by the Federal Reserve? A) Tax and tariff policy. B) Government spending. C) Fiscal Policy. D) Monetary Policy. Show Answer Correct Answer: D) Monetary Policy. 6. When did the New York Federal Reserve (EROC) make their vault? A) 1916. B) 1924. C) 1926. D) 1918. Show Answer Correct Answer: B) 1924. 7. The interest rate that the Federal Reserve charges commercial banks for Overnight loans is called the ..... ? A) Inside lag. B) Monetary policy. C) Tight money policy. D) Discount rate. Show Answer Correct Answer: D) Discount rate. 8. Which of the following would NOT be included in M1? A) $ 50, 000 in your Roth IRA. B) $ 6, 000 buried in your back yard. C) $ 1000 in your checking account. D) $ 20 in your pocket. Show Answer Correct Answer: A) $ 50, 000 in your Roth IRA. 9. A ..... pays interest, but also allows people to write checks. A) Certificate of deposit. B) Savings account. C) Checking account. D) Money market account. Show Answer Correct Answer: D) Money market account. 10. Which of the following is an action the Federal Reserve might take? A) Increase government spending. B) Expand eligibility for Medicare. C) Lower interest rates. D) Prohibit excessive regulation of small business. Show Answer Correct Answer: C) Lower interest rates. 11. The government may use expansionist policy to help the economy if ..... A) Supply is low and Demand is high. B) GDP is low and unemployment is high. C) Inflation is low and savings are high. D) Spending is low and the debt is high. Show Answer Correct Answer: B) GDP is low and unemployment is high. 12. Voting members of the FOMC include seven members of the ..... and presidents of the Federal Reserve Banks. A) Senate. B) Financial Institution League. C) Presidents Council. D) Board of Governors. Show Answer Correct Answer: D) Board of Governors. 13. Buying and selling US government securities (bonds) to raise and lower interest rates A) Reserve Requirement Rate. B) Discount Rate. C) Open Market Operation. D) Fed Fund Rate. Show Answer Correct Answer: C) Open Market Operation. 14. A ..... pays higher interest but has a fixed period of time. A) Money market account. B) Savings account. C) Certificate of deposit. D) Checking account. Show Answer Correct Answer: C) Certificate of deposit. 15. Kiana paid 3 bushels of corn for 5 flats of strawberries. This type of money is A) Representative. B) Fiat. C) Commodity. D) Currency. Show Answer Correct Answer: C) Commodity. 16. What group regulates stocks and financial services companies? A) Securities and Exchange Commission (SEC). B) National Labor Relations Board (NLRB). C) National Aeronautics and Space Administration (NASA). D) Federal Communications Commission (FCC). Show Answer Correct Answer: A) Securities and Exchange Commission (SEC). 17. Institution that regulates and oversees the nation's banks and is considered the Central Bank of the United States A) Federal Reserve. B) Federal Deposit Insurance Corporation. C) Securities and Exchange Commission. D) Bureau of Engraving and Printing. Show Answer Correct Answer: A) Federal Reserve. 18. This act, passed in 1978, began requiring the Fed chairman to report to Congress twice annually on monetary policy goals and objectives. A) Banking Act. B) Greenspan Act. C) Humphrey-Hawkins Act. D) Treasury Status Act. Show Answer Correct Answer: C) Humphrey-Hawkins Act. 19. The Federal Reserve was structured around geographic locations, but with improved ....., the district banks can locate near the institiutions they serve. A) Technology. B) Airports. C) Currency. D) Phones. Show Answer Correct Answer: A) Technology. 20. The Federal Reserve is responsible for implementing A) Monetary policy. B) Fiscal policy. C) Federal policy. D) Demand policy. Show Answer Correct Answer: A) Monetary policy. 21. The organization that regulates and monitors the flow of American money is called the ..... A) Federal Reserve System. B) US Treasury Department. C) Senate Finance Committee. D) Internal Revenue Service. Show Answer Correct Answer: A) Federal Reserve System. 22. What is a main goal of the Federal Reserve in its monetary policy? A) To curb recessions. B) Regulation of the stock market. C) Increasing government spending. D) Lowering taxes. Show Answer Correct Answer: A) To curb recessions. 23. Percentage of each deposit that banks must keep in reserves A) Discount rate. B) Open market operations. C) Revenue collection. D) Reserve requirement. Show Answer Correct Answer: D) Reserve requirement. 24. What percent of notes printed each year are $ 1 notes? A) 25%. B) 85%. C) 45%. D) 60%. Show Answer Correct Answer: C) 45%. 25. What is monetary policy? A) Provide financial services for commercial banks. B) Maintain stability of the financial system. C) Use changes in the money supply to fight recessions or inflations. D) None of above. Show Answer Correct Answer: C) Use changes in the money supply to fight recessions or inflations. 26. The federal funds market is the market in which: A) Banks borrow from the Fed. B) Banks borrow from each other. C) The federal government borrows from the Fed. D) Bank customers borrow from their banks. Show Answer Correct Answer: B) Banks borrow from each other. 27. The Federal Open Market Committee (FOMC) is part of the Federal Reserve and helps develop our government's ..... A) Employment Policies. B) Budgetary Policies. C) Monetary Policies. D) Import/Export Policies. Show Answer Correct Answer: C) Monetary Policies. 28. Which is a main goal of the Federal Reserve? A) Develop new laws for the United States. B) Create a high level of inflation. C) Create a stable, healthy economy. D) Print currency for American citizens. Show Answer Correct Answer: C) Create a stable, healthy economy. 29. If there is a recession, the Fed would most likely: A) Increase bank reserves by raising the discount rate. B) Increase bank reserves by buying government securities. C) Decrease bank reserves by raising the discount rate. D) Decrease bank reserves by selling government securities. Show Answer Correct Answer: B) Increase bank reserves by buying government securities. 30. Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply? A) An increase in the required reserve ratio. B) Purchases of bonds in open market operations. C) An increase in the discount rate. D) Higher taxes on interest income. Show Answer Correct Answer: B) Purchases of bonds in open market operations. ← PreviousNext →Related QuizzesMonetary QuizzesEconomics QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 5Federal Reserve Quiz 7Federal Reserve Quiz 8Federal Reserve Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books