This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which US president below is most associated with Supply Side Economics? A) Lyndon Johnson ( D ). B) Dwight Eisenhower ( R ). C) Ronald Reagan ( R ). D) Harry Truman ( D ). Show Answer Correct Answer: C) Ronald Reagan ( R ). 2. The FED's have their own special trained ..... ? A) Bankers. B) Police course. C) Staff. D) None of above. Show Answer Correct Answer: B) Police course. 3. The amount of deposits that banks are required to keep on hand is called ..... ? A) Monetary policy. B) Money creation. C) Reserve requirements. D) Prime rate. Show Answer Correct Answer: C) Reserve requirements. 4. The Fed controls GDP A) Directly through price indexing. B) Directly through government spending. C) Indirectly through tax collections. D) Indirectly through the money supply. Show Answer Correct Answer: D) Indirectly through the money supply. 5. Subprime loan: A) Loans made to people who have struggled to pay back loans in the past. B) Loans made to people who always pay their loans promptly. C) Loans made to people who have excellent character, capacity, and capital. D) Loans made to people who are a little shady. Show Answer Correct Answer: A) Loans made to people who have struggled to pay back loans in the past. 6. The percentage of checkable deposits that banks and other financial intermediaries are required to keep in cash reserves by the Federal Reserve is known as: A) The fractional reserve requirement. B) The excess reserve requirement. C) The required reserve ratio. D) The discount rate. Show Answer Correct Answer: C) The required reserve ratio. 7. The Federal Reserve System controls the size of the A) Tax supply. B) Money supply. C) Demand supply. D) Production supply. Show Answer Correct Answer: B) Money supply. 8. The profit (revenues in excess of costs) of the Federal Reserve is given to the A) Treasury. B) US president. C) State government. D) IRS. Show Answer Correct Answer: A) Treasury. 9. The total amount borrowed from investors to finance the government's deficit spending A) Intergovernmental revenue. B) Flat tax. C) Excise tax. D) National debt. Show Answer Correct Answer: D) National debt. 10. The index of leading economic indicators shows a strong move towards inflation. A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: A) Tight Money. 11. A short-term monetary policy action would MOST LIKELY A) Lower federal taxes. B) Lower interest rates. C) Raise medicare coverage. D) Raise unemployment insurance. Show Answer Correct Answer: B) Lower interest rates. 12. Which of these is not a security feature of US currency? A) Color-shifting ink. B) Magnetic strip. C) Image of the pyramid. D) Red and blue fibers. Show Answer Correct Answer: C) Image of the pyramid. 13. Unit of Account: A) Money is a measurement of value. B) Money is accepted in exchange for goods/services. C) Money can maintain value over time. D) None of above. Show Answer Correct Answer: A) Money is a measurement of value. 14. The FED acts as the bank for ..... A) The federal government. B) Local governments. C) Businesses and individuals. D) Beyonce. Show Answer Correct Answer: A) The federal government. 15. The Fed helps consumers by keeping interest rates and inflation ..... A) Low. B) High. C) Volatile. D) Scary. Show Answer Correct Answer: A) Low. 16. The principal plus accrued interest-to-date (not just principal) is calculated for each time period as more interest accrues A) Simple Interest. B) Compound Interest. C) Loan Interest. D) Credit Card. Show Answer Correct Answer: B) Compound Interest. 17. ..... pay interest on deposits and allow people to make withdrawals. A) Savings accounts. B) Certificate of deposit. C) Money market account. D) Checking account. Show Answer Correct Answer: A) Savings accounts. 18. Which US President is most associated with Keynesian economics? A) Franklin Roosevelt ( D ). B) George H.W. Bush ( R ). C) James Garfield ( R ). D) Jimmy Carter ( D ). Show Answer Correct Answer: A) Franklin Roosevelt ( D ). 19. What is the percentage of deposits that the Fed requires banks to hold back and not lend out A) Fed Fund Rate. B) Reserve Requirement Rate. C) Discount Rate. D) I.O.U Rate. Show Answer Correct Answer: B) Reserve Requirement Rate. 20. All of the following are examples of financial institutions EXCEPT A) Savings and loans. B) Credit unions. C) Commercial banks. D) Retailers. Show Answer Correct Answer: D) Retailers. ← 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