This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) 1.0. C) 0. D) 5.0. Show Answer Correct Answer: C) 0. 2. This person succeeded Ben Bernanke as the Federal Reserve Chairman. A) Paul Volcker. B) Janet Yellon. C) Sheila Bair. D) Timothy Geithner. Show Answer Correct Answer: B) Janet Yellon. 3. 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. 4. In a budget ....., expenses are higher than revenues. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: B) Deficit. 5. Which of the following is not part of the Federal Reserve System? A) Council of Economic Advisors. B) Board of Governors. C) Federal Open Market Committee. D) 12 Federal Reserve District Banks. Show Answer Correct Answer: A) Council of Economic Advisors. 6. 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. 7. Which organization established the Federal Reserve system? A) Congress. B) The controller of currency. C) Banks. D) The financial confederacy. Show Answer Correct Answer: A) Congress. 8. How many regional Reserve Banks make up the Federal Reserve System? A) 12. B) 6. C) 22. D) 50. Show Answer Correct Answer: A) 12. 9. In what year was the Federal Reserve created? A) 1910. B) 1913. C) 1915. D) 1917. Show Answer Correct Answer: B) 1913. 10. The amount of money that banks charge to each other for loans is the A) Discount rate. B) Required reserve ratio. C) Federal funds rate. D) Money multiplier. Show Answer Correct Answer: C) Federal funds rate. 11. How often does the Federal Open Market Committee meet? A) One time per month. B) Four times per year. C) Six times per year. D) Eight times per year. Show Answer Correct Answer: D) Eight times per year. 12. Which action by the Federal Reserve would help to slow down rising inflation? A) Buy Bonds. B) Sell Bonds. C) Raise Taxes. D) Lower Interest Rates. Show Answer Correct Answer: B) Sell Bonds. 13. The goals of monetary policy do not include the promotion of A) Maximum employment. B) Stable prices. C) Moderate long-term interest rates. D) Low taxes. Show Answer Correct Answer: D) Low taxes. 14. The Federal Reserve has a total of ..... districts. A) 10. B) 11. C) 12. D) 13. Show Answer Correct Answer: C) 12. 15. In a budget ....., revenues are higher than expenses. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: C) Surplus. 16. What is discount rate? A) The macroeconomic policy laid down by the central bank. B) Interest rate charged to commercial banks and other depository institutions on loans they receive. C) Implies avoiding both prolonged inflation and deflation. D) None of above. Show Answer Correct Answer: B) Interest rate charged to commercial banks and other depository institutions on loans they receive. 17. An individual bank can lend out at most its: A) Actual reserves. B) Legal reserves. C) Checkable deposits. D) Excess reserves. Show Answer Correct Answer: D) Excess reserves. 18. WHat is the main purpose of a sin tax? A) Revenue generation. B) Behavior adjustment. C) Income redistribution. D) Resource allocation. Show Answer Correct Answer: B) Behavior adjustment. 19. Alan paid 6 oranges for 2 dozen eggs. This type of money is A) Fiat. B) Currency. C) Commodity. D) Representative. Show Answer Correct Answer: C) Commodity. 20. In a ..... budget, revenues and expenses are equal. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: A) Balanced. ← 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