This quiz works best with JavaScript enabled. Home > Economics > Monetary > Federal Reserve > Federal Reserve – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve System conducts its business directly with A) Product markets and factor markets. B) Stock markets and bond markets. C) Individuals, banks, and government. D) The government and banks. Show Answer Correct Answer: D) The government and banks. 2. When the Fed sells bonds, their action A) Reduces interest rates. B) Increases the money supply. C) Increases excess reserves in the banking system. D) Decreases the money supply. Show Answer Correct Answer: D) Decreases the money supply. 3. Which of the following is NOT a job of the Federal Reserve? A) Serving as the federal government's banker. B) Printing paper currency. C) Clearing checks. D) Lowering the national debt. Show Answer Correct Answer: D) Lowering the national debt. 4. The federal government might use fiscal policy to accelerate out of a recession by ..... federal spending and ..... federal tax rates A) Stopping / Starting. B) Increasing / Decreasing. C) Starting / Stopping. D) Decreasing / Increasing. Show Answer Correct Answer: B) Increasing / Decreasing. 5. The total value of all goods and services produced by a country over a specific time period of time is known as the ..... A) GDP. B) USDA. C) FED. D) FCA. Show Answer Correct Answer: A) GDP. 6. The % of deposits that are NOT part of the reserve requirement A) Are kept in the vault. B) Are available to loan out. C) Is much less than the % in RR. D) Goes to the Feds to invest. Show Answer Correct Answer: B) Are available to loan out. 7. If the government wants to stimulate(speed up) the economy A) Cut taxes. B) Sell bonds. C) Lower the discount rate. D) Raise Taxes. Show Answer Correct Answer: A) Cut taxes. 8. Which of the following is part of the federal reserve system A) The people. B) The board of governors. C) Taxes. D) The president. Show Answer Correct Answer: B) The board of governors. 9. States receive most of their intergovernmental revenue funds from A) Other state governments. B) The federal government. C) Local governments. D) Public utilities. Show Answer Correct Answer: B) The federal government. 10. How many Federal Reserve District banks are there? A) 6. B) 9. C) 5. D) 12. Show Answer Correct Answer: D) 12. 11. Which of the following could the Federal Reserve NOT do? A) Increase government spending on space exploration. B) Increase interest rates to lower inflation. C) Reduce interest rates to fight a recession. D) Provide emergency loans to US banks to prevent a financial crisis. Show Answer Correct Answer: A) Increase government spending on space exploration. 12. Where is the Board of Governors located? A) Travels to the various Reserve Banks. B) In the state of Washington. C) At the New York Federal reserve. D) In the District of Columbia. Show Answer Correct Answer: D) In the District of Columbia. 13. A bank's "required reserves" are: A) Held as deposits with the Federal Reserve System. B) Equal to its checkable deposits. C) Equal to its transactions deposits. D) None of these. Show Answer Correct Answer: A) Held as deposits with the Federal Reserve System. 14. Currency is made of a combination of A) Wood pulp and cotton. B) Wool and silk fiber. C) Linen and burlap. D) Cotton and linen. Show Answer Correct Answer: D) Cotton and linen. 15. How many banks are there in the Federal Reserve system? A) 8. B) 16. C) 10. D) 12. Show Answer Correct Answer: D) 12. 16. The part of the Federal Reserve System responsible for monetary policy. A) Office of Management and Budget. B) Federal Open Market Committee. C) Department of Treasury. D) None of above. Show Answer Correct Answer: B) Federal Open Market Committee. 17. A way of storing value from the time you get money to the the time you spend it 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: B) Store of value. 18. Although many people no longer write checks, the Fed is still responsible for processing the checks through ..... A) Clearinghouses. B) Member banks. C) Bureau of the Mint. D) District banks. Show Answer Correct Answer: A) Clearinghouses. 19. What Is the fed? A) U.S central bank. B) The school. C) The court. D) The police. Show Answer Correct Answer: A) U.S central bank. 20. How many Federal Reserve Districts are there in the Federal Reserve System? A) 12. B) 8. C) 13. D) 10. Show Answer Correct Answer: A) 12. 21. In what decade did the Federal Reserve begin open market operations? A) 1930s. B) 1960s. C) 1920s. D) 1910s. Show Answer Correct Answer: C) 1920s. 22. What description best supports the function of the Federal Reserve System? A) City's central bank. B) State's central bank. C) Locality's central bank. D) Nation's central bank. Show Answer Correct Answer: D) Nation's central bank. 23. How many Federal Reserve districts are there? A) 1. B) 5. C) 12. D) 7. Show Answer Correct Answer: C) 12. 24. Before each FOMC meeting, each Reserve Bank prepares a summary of current economic conditions in their district, which is published as the ..... A) Beige Book. B) Research Report. C) Condition Status Report. D) Economist Update. Show Answer Correct Answer: A) Beige Book. 25. What is the term for when the Federal Reserve decreases the reserve requirement, making more money available for borrowing and investment? A) Tight money. B) Fiscal policy. C) Open market. D) Easy money. Show Answer Correct Answer: D) Easy money. 26. Which of the following is NOT a function that the Fed performs for the Treasury? A) Maintaining treasury accounts. B) Processing government checks & US savings bonds. C) Setting US tax rates. D) Collecting federal tax deposits. Show Answer Correct Answer: C) Setting US tax rates. 27. The Federal Fund Rate is ..... A) The target interest rate set by the FOMC. B) Is the target interest rate set by the Board of Governors. C) Is the target interest rate set by New York Federal Reserve President. D) The target interest rate set by the Securities Exchange desk. Show Answer Correct Answer: A) The target interest rate set by the FOMC. 28. To reduce the money supply, the Fed will most likely A) Buy bonds from the banks. B) Sell bonds to the banks. C) Invade the bank through the use of armed forces. D) Call the United Nations for a loan. Show Answer Correct Answer: B) Sell bonds to the banks. 29. To invest and grow savings is part of the A) Taxes. B) Financial services. C) Monetary policy. D) Financial services for students. Show Answer Correct Answer: B) Financial services. 30. The board of seven appointed members who surpervise the operations of the Fed and set policy is called the A) Board of Bankers. B) Board of Governors. C) Board of Trustees. D) Board of Regulators. Show Answer Correct Answer: B) Board of Governors. ← 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