This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Earnings on stocks are called A) Blue chip stocks. B) Over the counter stocks. C) Growth stocks. D) Dividends. Show Answer Correct Answer: D) Dividends. 2. Which of the following will likely slow economic growth? A) Buying bonds. B) Increasing fed fund rate. C) Decreasing discount rate. D) Decreasing required reserves. Show Answer Correct Answer: B) Increasing fed fund rate. 3. The financial crisis beginning in the late 2000's was initially linked to which economic sector? A) Banking/Finance. B) Real Estate/Housing. C) Consumer Spending. D) Manufacturing. Show Answer Correct Answer: B) Real Estate/Housing. 4. Which of the following is NOT a type of currency? A) Coins. B) Credit cards. C) Federal Reserve notes. D) Checks and debit cards. Show Answer Correct Answer: B) Credit cards. 5. What is the Federal Reserve's primary source of income? A) Tax revenues. B) Fees fro check processing. C) Treasury department. D) Interest on government securities. Show Answer Correct Answer: D) Interest on government securities. 6. What do state governments spend he most on? A) The federal government. B) Welfare. C) Higher education. D) Local governments. Show Answer Correct Answer: D) Local governments. 7. Each Federal Reserve district president reports to the A) Senate. B) Governor. C) Board of directors. D) Finance committee. Show Answer Correct Answer: C) Board of directors. 8. Which Federal Reserve district serve the largest number of states> A) Cleveland. B) Atlanta. C) Dallas. D) San Francisco. Show Answer Correct Answer: D) San Francisco. 9. Who sells government bonds? A) EROC. B) Federal Reserve. C) Banks. D) None of above. Show Answer Correct Answer: B) Federal Reserve. 10. "Those who benefit from government goods and services should pay in proportion to the amount of the benefits they receive." So states the A) Incidence of tax. B) Ability-to-pay rule. C) Alternative minimum tax. D) Benefit principle. Show Answer Correct Answer: D) Benefit principle. 11. The Feds chief body of monetary policy making is the ..... A) Reserve bank presidents. B) Federal Open Market Committee. C) Purchasing desk of the New York Federal Reserve. D) Economists. Show Answer Correct Answer: B) Federal Open Market Committee. 12. An example of a tight money policy is A) An increase in the reserve requirement. B) The Fed buying government securities in the open market. C) A decrease in the prime lending rate. D) A decrease in the discount rate. Show Answer Correct Answer: A) An increase in the reserve requirement. 13. The ..... District Federal Reserve Bank serves Michigan A) Memphis. B) Richmond. C) Columbia. D) Chicago. Show Answer Correct Answer: D) Chicago. 14. The American Revolutionary that believed a centralized banking system was a key to promoting industry and trade A) Andrew Jackson. B) Benjamin Franklin. C) Alexander Hamilton. D) George Washington. Show Answer Correct Answer: C) Alexander Hamilton. 15. What is a stock? A) A loan an investor makes to a company or government that pays interest over time. B) A share of ownership in a company. C) A collection of investments sold as a package. D) An option to purchase something in the future at todays price. Show Answer Correct Answer: B) A share of ownership in a company. 16. The minimum amount of reserves that must be held by a commercial bank is called the ..... A) Reserve Requirements. B) Discount rate. C) Money supply. D) District banks. Show Answer Correct Answer: A) Reserve Requirements. 17. Which of the following is the most frequently used tool the Fed uses to control the supply of money? A) The discount rate. B) The reserve requirements. C) Open market operations. D) The 30-year home-mortgage interest rate. Show Answer Correct Answer: C) Open market operations. 18. Which of these is NOT a job of the Federal Reserve? A) Monitor banks. B) Maintain the value of currency. C) Act as the bank for the U.S. government. D) Give out loans to customers. Show Answer Correct Answer: D) Give out loans to customers. 19. Most commonly used tool by the Federal Reserve which is the buying and selling of government securities (bonds) A) Discount rate. B) Reserve requirement. C) Interest on reserves. D) Open market operations. Show Answer Correct Answer: D) Open market operations. 20. How many Regional Banks are in the Federal Reserve System? A) 4. B) 5. C) 7. D) 12. Show Answer Correct Answer: D) 12. ← PreviousNext →Related QuizzesMonetary QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 5Federal Reserve Quiz 6Federal Reserve Quiz 7Federal Reserve Quiz 8Federal Reserve Quiz 9Federal Reserve Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books