This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the number of electoral votes for each state based on? A) Population. B) Congressional Representation. C) Number of registered voters in the state. D) How long that state has been part of the United States. Show Answer Correct Answer: B) Congressional Representation. 2. Who makes decisions regarding changes in the discount rate? A) Board of supervisors. B) Bank presidents. C) The Federal Reserve. D) Board of governors. Show Answer Correct Answer: D) Board of governors. 3. During the 1920's, the Fed began to use this as a monetary policy tool following the actions by Benjamin Strong. A) Credit swaps with other central banks. B) Open market operations. C) Gold and Silver monitoring. D) International exchange agreements. Show Answer Correct Answer: B) Open market operations. 4. What is the primary reason for a company to issue stock? A) The stocks help investors earn a higher rate of return. B) To raise money to grow the company. C) To distribute the risk of bankruptcy across more investors. D) To increase greater awareness of the company. Show Answer Correct Answer: B) To raise money to grow the company. 5. We are in a recession. Factory orders are down, and the economy appears to be slumping. A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: B) Easy Money. 6. Which financial institution is considered full service because they offer a variety of services? A) Commercial banks. B) Credit unions. C) Savings and loans. D) None of above. Show Answer Correct Answer: A) Commercial banks. 7. Who decides whether or not to change interest rates? A) Federal Reserve District Banks. B) Federal Open Market Committee. C) Board of Governors. D) Chairman of the Board of Governors. Show Answer Correct Answer: B) Federal Open Market Committee. 8. BONUS:The current chairperson of the Federal Reserve is: A) Janet Yellen. B) Alan Greenspan. C) Ben Bernanke. D) Jerome Powell. Show Answer Correct Answer: D) Jerome Powell. 9. What is the electronic payment delivery system most often used to process low-dollar recurring retail payments? A) ACH. B) Fedwire. C) Debit Track. D) ATM. Show Answer Correct Answer: A) ACH. 10. Controlling of the money supply by the Federal Reserve to influence the cost and availability of credit A) Fiscal policy. B) Supply side economics. C) Monetary policy. D) GDP ouput expenditure model. Show Answer Correct Answer: C) Monetary policy. 11. Which of the following is not a main responsibility of the 12 District Reserve Banks? A) Deposit payroll checks. B) Supervise commercial banks. C) Contribute to monetary policy. D) Provide financial services. Show Answer Correct Answer: A) Deposit payroll checks. 12. The National Banking Act of 1863 provided for currency circulated by nationally chartered banks to be backed by U.S. government securities, this effectively helped to create ..... A) Low inflation. B) Price stability. C) The gold standard. D) Uniform currency for the nation. Show Answer Correct Answer: D) Uniform currency for the nation. 13. Funds that one level of government receives from another level of government A) Intergovernmental revenue. B) Flat tax. C) Excise tax. D) National debt. Show Answer Correct Answer: A) Intergovernmental revenue. 14. How will it affect the economy if the Federal Reserve increases the Overnight rate? A) It will speed up the economy. B) It will slow down the economy. C) Nothing will happen. D) Banks will get mad. Show Answer Correct Answer: B) It will slow down the economy. 15. Where do Banks get the money they use to loan out to others? A) The Government. B) The Federal Reserve. C) Other Banks. D) The Savings of Depositers. Show Answer Correct Answer: D) The Savings of Depositers. 16. Which of the following is one of the main parts of the Federal Reserve System? A) Board of Operators. B) New York Stock Exchange. C) Federal Open Market Committee. D) Stock market. Show Answer Correct Answer: C) Federal Open Market Committee. 17. The Board of Governors is appointed by the A) Vice president. B) President. C) Fed. D) Electorate. Show Answer Correct Answer: B) President. 18. What is the term for the rise in prices over time? A) Deflation. B) Interest. C) Depresstion. D) Inflation. Show Answer Correct Answer: D) Inflation. 19. There are 12 of them, they serve a geographic district of the country, they take in deposits and make loans (to other banks). All these phrases describe A) The Federal Open Market Committee. B) The Department of the Treasury. C) Member Banks. D) None of above. Show Answer Correct Answer: C) Member Banks. 20. Someone challenging an incumbent president might want the Federal Reserve to do which of the following in an election year? A) Increase interest rates. B) Decrease interest rates. C) Engage in quantitative easing. D) Recommend to Congress that fiscal stimulus be increased. Show Answer Correct Answer: A) Increase interest rates. ← PreviousNext →Related QuizzesMonetary QuizzesFederal Reserve Quiz 1Federal Reserve Quiz 2Federal Reserve Quiz 3Federal Reserve Quiz 4Federal Reserve Quiz 6Federal Reserve Quiz 7Federal Reserve Quiz 8Federal Reserve Quiz 9Federal Reserve Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books