This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 10 (20 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) Reserve rate. C) Discount rate. D) Monetary rate. Show Answer Correct Answer: C) 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) Deposits. B) Interest. C) Public goods. D) Taxes. Show Answer Correct Answer: B) 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) 350 billion. B) 3 trillion. C) 45 billion. D) 85 billion. Show Answer Correct Answer: C) 45 billion. 5. Which of the following is not an advisory council of the Federal Reserve? A) Federal Advisory Council. B) Consumer Advisory Council. C) Thrift Institutions Advisory Council. D) State Bank Advisory Council. Show Answer Correct Answer: D) 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) $ 50. B) $ 100. C) $ 500. D) $ 1, 000. Show Answer Correct Answer: B) $ 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) Informal. C) Concurrent. D) Reserved. 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) President. B) Board of Governors. C) Federal Reserve Commission. D) Federal Open Market Committee. Show Answer Correct Answer: B) Board of Governors. 13. Which of the following is the single largest source of federal revenue? A) Corporate income tax. B) Medicare payroll taxes. C) Borrowing. D) Individual income tax. Show Answer Correct Answer: D) Individual income tax. 14. The FED manages the amount of ..... in circulation. A) Money. B) Loans. C) Credit. D) Banks. Show Answer Correct Answer: A) 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) Contractionary money policy. C) Expansionary money policy. D) Reduced policy lags. Show Answer Correct Answer: B) Contractionary money policy. ← PreviousNext →Related QuizzesMonetary QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 5Federal Reserve Quiz 6Federal Reserve Quiz 7Federal Reserve Quiz 8Federal Reserve Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books