This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. In what decade did the Federal Reserve begin open market operations? A) 1910s. B) 1920s. C) 1930s. D) 1960s. Show Answer Correct Answer: B) 1920s. 3. What description best supports the function of the Federal Reserve System? A) State's central bank. B) Nation's central bank. C) Locality's central bank. D) City's central bank. Show Answer Correct Answer: B) Nation's central bank. 4. How many Federal Reserve districts are there? A) 1. B) 5. C) 7. D) 12. Show Answer Correct Answer: D) 12. 5. Before each FOMC meeting, each Reserve Bank prepares a summary of current economic conditions in their district, which is published as the ..... A) Economist Update. B) Condition Status Report. C) Research Report. D) Beige Book. Show Answer Correct Answer: D) Beige Book. 6. What is the term for when the Federal Reserve decreases the reserve requirement, making more money available for borrowing and investment? A) Easy money. B) Open market. C) Tight money. D) Fiscal policy. Show Answer Correct Answer: A) Easy money. 7. Which of the following is NOT a function that the Fed performs for the Treasury? A) Collecting federal tax deposits. B) Setting US tax rates. C) Processing government checks & US savings bonds. D) Maintaining treasury accounts. Show Answer Correct Answer: B) Setting US tax rates. 8. The Federal Fund Rate is ..... A) Is the target interest rate set by the Board of Governors. B) Is the target interest rate set by New York Federal Reserve President. C) The target interest rate set by the FOMC. D) The target interest rate set by the Securities Exchange desk. Show Answer Correct Answer: C) The target interest rate set by the FOMC. 9. 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. 10. To invest and grow savings is part of the A) Taxes. B) Financial services. C) Financial services for students. D) Monetary policy. Show Answer Correct Answer: B) Financial services. 11. 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 Regulators. D) Board of Trustees. Show Answer Correct Answer: B) Board of Governors. 12. The Fed makes the banks keep a certain amount of money on hand. This is referred to as the ..... A) Reserve requirement. B) Emergency Fund. C) Stockpile. D) Hoard. Show Answer Correct Answer: A) Reserve requirement. 13. If the federal reserve increases interest rates and reserve requirements, what would be the most likely effect of that decision? A) The stock market will crash. B) Unemployment will rise. C) Unemployment will fall. D) Inflation will rise. Show Answer Correct Answer: B) Unemployment will rise. 14. The government may use contractionary economic policies if the economy is growing ..... A) Too fast. B) Too slow. C) Unpredictably. D) Unequally. Show Answer Correct Answer: A) Too fast. 15. To finance the American Revolution, the first paper notes were produced were known as? A) Bank Notes. B) U.S. Notes. C) Greenbacks. D) Continentals. Show Answer Correct Answer: D) Continentals. 16. If the supply of money in the economy increases, the Fed must have ..... the discount rate or the reserve requirement. A) Increased. B) Decreased. C) Kept the same. D) Monitored. Show Answer Correct Answer: B) Decreased. 17. Marcella puts money into her savings account. Which function of money does this illustrate? A) Unit of account. B) Medium of exchange. C) Store of value. D) Fiat money. Show Answer Correct Answer: C) Store of value. 18. The Consumer Financial Protection Bureau also provides consumers with information about A) Credit reports. B) Identity theft. C) Home loans. D) All of these. Show Answer Correct Answer: D) All of these. 19. Which is a goal of the Federal Reserve's monetary policy? A) Create a high level of inflation. B) Create price stability in the economy. C) Print currency for American citizens. D) Develop fiscal policy for the United States. Show Answer Correct Answer: B) Create price stability in the economy. 20. The ..... acts as the federal government's bank A) Federal Reserve Bank. B) Bank of America. C) First Bank of the United States. D) National Bank of the United States. Show Answer Correct Answer: A) Federal Reserve 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