This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money deposited in a ..... can be withdrawn at any time by check or debit card. A) Savings account. B) Certificate of deposit. C) Money market account. D) Checking account. Show Answer Correct Answer: D) Checking account. 2. Which of the following scenarios would increase the money supply? A) The Federal Reserve sells bonds on the open market. B) The Federal Reserve buys bonds on the open market. C) Increasing the discount rate. D) Increasing the reserve requirement. Show Answer Correct Answer: B) The Federal Reserve buys bonds on the open market. 3. The Federal Reserve act was signed into law by then president Woodrow Wilson in ..... A) 1865. B) 1913. C) 1917. D) 1930. Show Answer Correct Answer: B) 1913. 4. What is the definition of barter? A) Money serves as a medium of exchange. B) Only precious metals are accepted as money goods are traded directly for other goods. C) Goods are traded directly for other goods. D) Paper money is backed by gold. Show Answer Correct Answer: C) Goods are traded directly for other goods. 5. In Keynes's view, a short-term budget deficit due to government spending or tax cuts is ..... A) To be avoided at all costs. B) Sometimes necessary to help stimulate the economy. C) Economically impossible. D) Morally wrong. Show Answer Correct Answer: B) Sometimes necessary to help stimulate the economy. 6. Money accepted for goods and services defines 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: A) Medium of exchange. 7. Written rule defining acceptable behavior A) Examiners. B) Governors. C) Regulation. D) Supervision. Show Answer Correct Answer: C) Regulation. 8. Which of these actions would be an example of monetary policy? A) Increasing exports. B) Reducing income taxes. C) Raising the reserve requirement. D) Lowering government spending. Show Answer Correct Answer: C) Raising the reserve requirement. 9. The Federal Deposit Insurance Corporation (FDIC) was created to A) Insure customers money against inflation. B) Insure customer deposits if a bank fails. C) Insure banks if a customer dosent make enough deposits. D) Allow customers to make deposits at federal banks. Show Answer Correct Answer: B) Insure customer deposits if a bank fails. 10. ..... carry out Fed policy and oversee banking within its district. A) Financial Institutions. B) Federal Reserve System. C) District banks. D) None of above. Show Answer Correct Answer: C) District banks. 11. Which is the long term goal of the FED A) Low stable inflation. B) High stable inflation. C) Low stable recession. D) High stable inflation. Show Answer Correct Answer: A) Low stable inflation. 12. Which part of the Fed is considered private? A) Board of Governors. B) The President. C) The 12 Reserve Banks. D) The FOMC. Show Answer Correct Answer: C) The 12 Reserve Banks. 13. Interest rate the Fed charges on loans to member banks A) Federal Rate. B) Discount Rate. C) Prime Rate. D) Interest Rate. Show Answer Correct Answer: B) Discount Rate. 14. The primary metal used to make nickels is A) Zinc. B) Copper. C) Nickel. D) Steel. Show Answer Correct Answer: B) Copper. 15. A liquid asset is one where the asset is easily A) Converted to the medium of exchange. B) Exchanged because of the intrinsic value of commodity money. C) Transported to the bank. D) Circulated throughout the economy in a given year. Show Answer Correct Answer: A) Converted to the medium of exchange. 16. If the economy is expanding too quickly, the Federal Reserve will try to stabilize the economy by doing what? A) Increasing money supply. B) Decreasing money supply. C) Decreasing interest rates. D) Lowering the discount rate. Show Answer Correct Answer: B) Decreasing money supply. 17. Which of the following is expansionary policy?Play out each scenario-don't guess A) Selling bonds. B) Decrease discount rate. C) Increase required reserves. D) None of above. Show Answer Correct Answer: B) Decrease discount rate. 18. Coins and paper bills make up the ..... of the United States. A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: B) Currency. 19. The Federal Reserve regulates and monitors ..... A) Banks. B) Businesses. C) Government agencies. D) Consumers. Show Answer Correct Answer: A) Banks. 20. The terms proportional, progressive, and regressive refer to A) Types of taxes. B) Criteria for effective taxes. C) Goals of tax reform. D) Principles of taxation. Show Answer Correct Answer: A) Types of taxes. ← 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