This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of tax is levied on specific items or services, including gasoline and telephone services? A) Estate tax. B) Excise tax. C) Gift tax. D) Customs duty. Show Answer Correct Answer: B) Excise tax. 2. If we did not have money, we would have to ....., or trade for something of equal worth. A) Barter. B) Currency. C) Debt. D) None of above. Show Answer Correct Answer: A) Barter. 3. Capacity: A) Can you pay back the loan?. B) Will you pay back the loan?. C) What can the bank take if you don't pay back the loan?. D) None of above. Show Answer Correct Answer: A) Can you pay back the loan?. 4. Which part of the Federal Reserve System writes regulations that make commercial banks financially sound and make the nation economically strong? A) Board of Governors. B) Economists. C) Free Open Market Committee. D) Presidents of the Federal Reserve Banks. Show Answer Correct Answer: A) Board of Governors. 5. What would be a reasonable monetary policy if the economy was in a recession? A) Cut taxes. B) Raise taxes. C) Reduce the money supply. D) Increase the money supply. Show Answer Correct Answer: D) Increase the money supply. 6. What is the Purpose of the board of governors? A) To provide leadership. B) To provide money. C) To provide education. D) To provide housing. Show Answer Correct Answer: A) To provide leadership. 7. Who determines monetary policy? A) President. B) Federal Trade Commission. C) House of Representatives. D) Federal Open Market Committee. Show Answer Correct Answer: D) Federal Open Market Committee. 8. What kind of vote is needed to confirm an appointment to the Federal Reserve? A) Simple majority. B) Filibuster-proof 60. C) Two Thirds. D) Three Fourths. Show Answer Correct Answer: A) Simple majority. 9. Why does the Fed go to a tight money policy when the economy is expanding too quickly? A) To make loans easy and cheap. B) To control inflation. C) To encourage businesses to hire more people. D) They want people to spend more money. Show Answer Correct Answer: B) To control inflation. 10. Which type of voter cares most about the economic record of an incumbent president? A) Retrospective. B) Low information. C) Party line. D) Prospective. Show Answer Correct Answer: A) Retrospective. 11. Proportional tax on individual income:every one pays the same percentage A) Intergovernmental revenue. B) Flat tax. C) Excise tax. D) National debt. Show Answer Correct Answer: B) Flat tax. 12. Fiscal policy is carried out by: A) Congress and the President. B) The Federal Reserve. C) The PA Reserve Bank. D) The United Nations. Show Answer Correct Answer: A) Congress and the President. 13. US notes are designed and printed by the A) Bureau of Engraving and Printing. B) Note Production Foundation. C) Comptroller of Currency. D) Currency Product Office. Show Answer Correct Answer: A) Bureau of Engraving and Printing. 14. Using money as a standardized metric that allows us to measure the relative value of things 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: C) Measure of value/unit of account. 15. Which of the following is NOT part of the Federal Reserve A) FOMC-Federal Open Market Committee. B) The 12 Reserve Banks. C) The Board of Governors. D) The FDIC-Federal Deposit Insurance Corporation. Show Answer Correct Answer: D) The FDIC-Federal Deposit Insurance Corporation. 16. Which of the following is an example of a Private Financial Institution? A) Walmart. B) Best Buy. C) Wells Fargo. D) The Federal Reserve. Show Answer Correct Answer: C) Wells Fargo. 17. An effective tax is one o that exhibits one or more of the following characteristics. A) Simplicity. B) Equity. C) Efficiency. D) All of the other three. Show Answer Correct Answer: D) All of the other three. 18. Paper money that has no intrinsic value is referred to as A) Curved money. B) Fiat money. C) Commodity money. D) Federal money. Show Answer Correct Answer: B) Fiat money. 19. Which of these was not a result of historically high inflation of the 1970s? A) Increase in consumer and producer prices. B) High oil prices. C) Doubling of the federal debt. D) Increased unemployment. Show Answer Correct Answer: C) Doubling of the federal debt. 20. The Federal Reserve System was officially established in A) 1790. B) 1811. C) 1836. D) 1913. Show Answer Correct Answer: D) 1913. ← 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