This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which was NOT a key cause of the 2008 recession? A) Housing bubble. B) Deregulation of banking services. C) Dot com bubble burst. D) Buying on margin. Show Answer Correct Answer: D) Buying on margin. 2. What part of the US Constitution discusses the President's appointment powers? A) Article I. B) Article II. C) Article III. D) The Constitution doesn't mention this. Show Answer Correct Answer: B) Article II. 3. The Federal Deposit Insurance Corporation: A) Insures all demand deposits without limit. B) Insures all demand deposits up to $ 250, 000. C) Insures all demand deposits up to $ 25, 000. D) Has eliminated bank failures. Show Answer Correct Answer: B) Insures all demand deposits up to $ 250, 000. 4. When was the Federal Reserve System discovered? A) 1918. B) 1924. C) 1916. D) 1913. Show Answer Correct Answer: D) 1913. 5. The agency responsible for regulating the money supply in the United States is A) The President of the United States. B) The U.S. Treasury. C) The Secretary of the Treasury. D) The Federal Reserve. Show Answer Correct Answer: D) The Federal Reserve. 6. If you car is said to be worth $ 20, 000, what function of money is being used? A) Medium of Exchange. B) Store of Value. C) Unit of Account. D) Acceptable. Show Answer Correct Answer: C) Unit of Account. 7. The Federal Reserve has a dual mandate to ..... A) Increase stock market volatility. B) Reduce unemployment. C) Seek price stability. D) Keep unemployment low and prices stable. Show Answer Correct Answer: D) Keep unemployment low and prices stable. 8. To fight inflation, the FED should ..... A) Decrease reserve requirements. B) Increase reserve requirements. C) Lower interest rates. D) Keep interest rates the same. Show Answer Correct Answer: B) Increase reserve requirements. 9. What is NOT one of the three main functions of money? A) Medium of Exchange. B) Store of Value. C) Unit of Account. D) Durability. Show Answer Correct Answer: D) Durability. 10. The least circulated US coin is the A) Penny. B) Quarter. C) Half dollar. D) Presidential dollar. Show Answer Correct Answer: C) Half dollar. 11. If the Fed wanted increase economic activity (ease monetary policy), which might they do? A) Increase reserves, limiting what banks can loan. B) Increase the interest rate. C) Decrease the interest rate. D) Lower taxes. Show Answer Correct Answer: C) Decrease the interest rate. 12. How many times to Open Market Committee meet per year? A) 8. B) 2. C) 4. D) 1. Show Answer Correct Answer: A) 8. 13. Unemployment is low and prices are rising steadily A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: A) Tight Money. 14. Which of the following is a function of the FR system A) To elect the president. B) To clean dirty money. C) Supervise and regulate banking operations. D) Supervise school money. Show Answer Correct Answer: C) Supervise and regulate banking operations. 15. Which function of the Federal Reserve is most likely to influence whether or not you borrow money in the future? A) Maximum employment. B) Supervision/regulation of banks. C) Payments services. D) Monetary policy. Show Answer Correct Answer: D) Monetary policy. 16. Interest rate the Federal Reserve charges member banks for loans A) Revenue collection. B) Discount rate. C) Reserve requirement. D) Open market operations. Show Answer Correct Answer: B) Discount rate. 17. Which of these was NOT a result of the historically high inflation of the 1970s? A) Increase in producer and consumer prices. B) Increased unemployment. C) High oil prices. D) Doubling of the federal deficit. Show Answer Correct Answer: B) Increased unemployment. 18. Money lent by a bank effectively becomes more money through repeated spending thanks to the ..... A) Entitlements. B) Deposit multiplier. C) Interest rates. D) None of above. Show Answer Correct Answer: B) Deposit multiplier. 19. Which of these is a Federal Reserve note? A) A dime. B) A check. C) A credit card. D) A 20 dollar bill. Show Answer Correct Answer: D) A 20 dollar bill. 20. What are reserve banks? A) Banks that help the central bank carry out its duties. B) Banks that set the interest rate. C) Banks that loan money to anyone who applies. D) Banks that are located in each state. Show Answer Correct Answer: A) Banks that help the central bank carry out its duties. ← PreviousNext →Related QuizzesMonetary QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal 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