This quiz works best with JavaScript enabled. Home > Economics > Monetary > Federal Reserve > Federal Reserve – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these interest rates is set by the Federal Reserve? A) Prime rate. B) Discount rate. C) Monetary rate. D) Reserve rate. Show Answer Correct Answer: B) Discount rate. 2. Which of the following led the opposition to the Second Bank of the United States? A) Benjamin Franklin. B) Andrew Jackson. C) Abraham Lincoln. D) Alexander Hamilton. Show Answer Correct Answer: B) Andrew Jackson. 3. What do we call the extra money paid back on a loan? A) Interest. B) Public goods. C) Deposits. D) Taxes. Show Answer Correct Answer: A) Interest. 4. Following the attacks on September 11, the Fed loaned this amount to financial institutions in order to provide stability to the U.S. economy A) 45 billion. B) 350 billion. C) 85 billion. D) 3 trillion. Show Answer Correct Answer: A) 45 billion. 5. Which of the following is not an advisory council of the Federal Reserve? A) State Bank Advisory Council. B) Federal Advisory Council. C) Thrift Institutions Advisory Council. D) Consumer Advisory Council. Show Answer Correct Answer: A) State Bank Advisory Council. 6. Budget deficits cause the government to borrow money, which adds to government ..... A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: C) Debt. 7. The largest US note currency in circulation si A) $ 100. B) $ 1, 000. C) $ 500. D) $ 50. Show Answer Correct Answer: A) $ 100. 8. What are the primary functions of the Federal Reserve? A) The Board of Governors, the District Banks, and the FOMC. B) Price stability and maximum employment. C) Supervision/regulation, payment services, and monetary policy. D) Audit and funding. Show Answer Correct Answer: C) Supervision/regulation, payment services, and monetary policy. 9. Which financial institution is the only one that offers investments? A) Commercial banks. B) Savings and loans. C) Credit unions. D) None of above. Show Answer Correct Answer: A) Commercial banks. 10. Appointing a Federal Reserve chair is what kind of power? A) Formal. B) Concurrent. C) Reserved. D) Informal. Show Answer Correct Answer: A) Formal. 11. Buying and selling of the United States securities by the Fed to affect the money supply. The Fed major tool to control the money supply A) Prime rate. B) Fund rate. C) Open Market operations. D) Tight money. Show Answer Correct Answer: C) Open Market operations. 12. The ..... is in charge of the Federal Reserve. A) Federal Reserve Commission. B) President. C) Board of Governors. D) Federal Open Market Committee. Show Answer Correct Answer: C) Board of Governors. 13. Which of the following is the single largest source of federal revenue? A) Corporate income tax. B) Borrowing. C) Individual income tax. D) Medicare payroll taxes. Show Answer Correct Answer: C) Individual income tax. 14. The FED manages the amount of ..... in circulation. A) Credit. B) Banks. C) Loans. D) Money. Show Answer Correct Answer: D) Money. 15. Which one of the following items would be the most liquid (able to be used in an exchange immediately)? A) Pizza. B) Ticket to next week's basketball game. C) Stereo. D) Dollar bill. Show Answer Correct Answer: D) Dollar bill. 16. To supply payment services to the public is part of the A) Roles and responsibilities. B) The three functions. C) System structure. D) Board of governors. Show Answer Correct Answer: A) Roles and responsibilities. 17. Which Federal Reserve Bank is located in New York? A) New York Federal Reserve Bank. B) Federal Reserve Bank of New York. C) EROC. D) None of above. Show Answer Correct Answer: C) EROC. 18. Where is the last resort for loans in case of emergency? A) Your local bank. B) Nowhere. C) Federal Reserve Bank. D) None of the above. Show Answer Correct Answer: C) Federal Reserve Bank. 19. Federal Reserve decisions can affect which of the following? A) How expensive it is to buy a house. B) How expensive it is to buy a car. C) How expensive it is to go to medical school. D) All of these. Show Answer Correct Answer: D) All of these. 20. What type of policy does the Federal Reserve use to counteract an expansion that is causing high inflation? A) Fiscal policy. B) Reduced policy lags. C) Expansionary money policy. D) Contractionary money policy. Show Answer Correct Answer: D) Contractionary money policy. 21. In response to the financial crisis in the 2000's, the Federal Reserve's policy making body cut the federal funds rate to nearly ....., the lowest level in over 50 years. A) 3.0. B) 0. C) 1.0. D) 5.0. Show Answer Correct Answer: B) 0. 22. This person succeeded Ben Bernanke as the Federal Reserve Chairman. A) Janet Yellon. B) Paul Volcker. C) Timothy Geithner. D) Sheila Bair. Show Answer Correct Answer: A) Janet Yellon. 23. What are the following ways that Fiscal policy impacts the economy? A) Through changing the discount rate. B) Through taxing and spending. C) By raising or lowering interest rates. D) By printing more money. Show Answer Correct Answer: B) Through taxing and spending. 24. In a budget ....., expenses are higher than revenues. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: B) Deficit. 25. Which of the following is not part of the Federal Reserve System? A) 12 Federal Reserve District Banks. B) Council of Economic Advisors. C) Board of Governors. D) Federal Open Market Committee. Show Answer Correct Answer: B) Council of Economic Advisors. 26. The ..... is the central bank of the United States. A) Financial institutions. B) Federal Reserve System. C) District Banks. D) None of above. Show Answer Correct Answer: B) Federal Reserve System. 27. Which organization established the Federal Reserve system? A) The controller of currency. B) The financial confederacy. C) Banks. D) Congress. Show Answer Correct Answer: D) Congress. 28. How many regional Reserve Banks make up the Federal Reserve System? A) 6. B) 50. C) 12. D) 22. Show Answer Correct Answer: C) 12. 29. In what year was the Federal Reserve created? A) 1915. B) 1913. C) 1917. D) 1910. Show Answer Correct Answer: B) 1913. 30. The amount of money that banks charge to each other for loans is the A) Federal funds rate. B) Required reserve ratio. C) Money multiplier. D) Discount rate. Show Answer Correct Answer: A) Federal funds 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 8Federal Reserve Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books