This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why do we pay taxes in our country? A) To make our Government rich. B) To provide for Public Goods and Services. C) To provide for Goods and Services. D) None of above. Show Answer Correct Answer: B) To provide for Public Goods and Services. 2. 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. 3. When the Fed sells bonds, their action A) Increases the money supply. B) Decreases the money supply. C) Increases excess reserves in the banking system. D) Reduces interest rates. Show Answer Correct Answer: B) Decreases the money supply. 4. Which of the following is NOT a job of the Federal Reserve? A) Printing paper currency. B) Clearing checks. C) Serving as the federal government's banker. D) Lowering the national debt. Show Answer Correct Answer: D) Lowering the national debt. 5. 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) Decreasing / Increasing. D) Starting / Stopping. Show Answer Correct Answer: B) Increasing / Decreasing. 6. The total value of all goods and services produced by a country over a specific time period of time is known as the ..... A) FED. B) USDA. C) FCA. D) GDP. Show Answer Correct Answer: D) GDP. 7. The % of deposits that are NOT part of the reserve requirement A) Goes to the Feds to invest. B) Are available to loan out. C) Are kept in the vault. D) Is much less than the % in RR. Show Answer Correct Answer: B) Are available to loan out. 8. If the government wants to stimulate(speed up) the economy A) Cut taxes. B) Lower the discount rate. C) Sell bonds. D) Raise Taxes. Show Answer Correct Answer: A) Cut taxes. 9. Which of the following is part of the federal reserve system A) The board of governors. B) Taxes. C) The president. D) The people. Show Answer Correct Answer: A) The board of governors. 10. States receive most of their intergovernmental revenue funds from A) The federal government. B) Public utilities. C) Other state governments. D) Local governments. Show Answer Correct Answer: A) The federal government. 11. How many Federal Reserve District banks are there? A) 12. B) 9. C) 6. D) 5. Show Answer Correct Answer: A) 12. 12. Which of the following could the Federal Reserve NOT do? A) Increase interest rates to lower inflation. B) Reduce interest rates to fight a recession. C) Provide emergency loans to US banks to prevent a financial crisis. D) Increase government spending on space exploration. Show Answer Correct Answer: D) Increase government spending on space exploration. 13. Where is the Board of Governors located? A) Travels to the various Reserve Banks. B) At the New York Federal reserve. C) In the state of Washington. D) In the District of Columbia. Show Answer Correct Answer: D) In the District of Columbia. 14. 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. 15. 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. 16. How many banks are there in the Federal Reserve system? A) 8. B) 10. C) 12. D) 16. Show Answer Correct Answer: C) 12. 17. 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. 18. 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. 19. Although many people no longer write checks, the Fed is still responsible for processing the checks through ..... A) Clearinghouses. B) Member banks. C) District banks. D) Bureau of the Mint. Show Answer Correct Answer: A) Clearinghouses. 20. What Is the fed? A) The police. B) The court. C) U.S central bank. D) The school. Show Answer Correct Answer: C) U.S central bank. ← 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