This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a function of the Federal Reserve System? A) To control the money supply. B) To supervise and regulate banks. C) To aid in the check clearing process. D) The fed does all of these. Show Answer Correct Answer: D) The fed does all of these. 2. The ..... is responsible for producing US coin. A) Coin institute. B) US mint. C) Fed Reserve BAnk. D) Secretary of states office. Show Answer Correct Answer: B) US mint. 3. Reserve banks assist the treasury in ..... A) Sending trucks of cash to smaller banks. B) Issuing and redeeming securities. C) Sending trucks of money to banks to prevent failure. D) Stopping the domino effect by giving customers of failing banks a bank to use. Show Answer Correct Answer: B) Issuing and redeeming securities. 4. The Fed maintains the supply of money, but the government agency responsible for printing money is the A) Federal Reserve. B) The President. C) Congress. D) Bureau of the Mint. Show Answer Correct Answer: D) Bureau of the Mint. 5. Decisions regarding purchases and sales of government securities by the Fed are made by the: A) Federal Funds Committee. B) Discount Committee. C) Federal Open Market Committee. D) FDIC. Show Answer Correct Answer: C) Federal Open Market Committee. 6. Which of the following policy actions by the Fed would cause the money supply to decrease? A) An open-market purchase. B) A decrease in required reserve ratios. C) An increase in the discount rate. D) None of these. Show Answer Correct Answer: C) An increase in the discount rate. 7. Which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks? A) The Federal Reserve Act. B) The Equal Credit Opportunity Act. C) The Monetary Control Act. D) The Thrift Bailout Bill. Show Answer Correct Answer: C) The Monetary Control Act. 8. The Central bank of the US is called A) The Federal Reserve. B) Government Reserve. C) National Reserve. D) State Reserve. Show Answer Correct Answer: A) The Federal Reserve. 9. The characteristics of money include all of the following except A) Portable. B) Durable. C) Divisible. D) Transferable. Show Answer Correct Answer: D) Transferable. 10. The largest US note ever printed was worth A) $ 10, 000. B) $ 20, 000. C) $ 50, 000. D) $ 100, 000. Show Answer Correct Answer: D) $ 100, 000. 11. Which of the following is an example of federal mandatory spending? A) Medicare. B) National defense. C) Social Security. D) Income security. Show Answer Correct Answer: C) Social Security. 12. If the Federal Reserve wants banks to loan out more money and stimulate the economy, what could it do? A) Lower the Reserve Requirements. B) Raise the discount rate. C) Reduce the money supply. D) Increase the number of district banks. Show Answer Correct Answer: A) Lower the Reserve Requirements. 13. Which Federal Reserve Bank always has voting rights on the FOMC? A) Kansas City. B) Chicago. C) New York. D) Dallas. Show Answer Correct Answer: C) New York. 14. . Which of these is a feature of open market operations? A) The Fed sells government securities. B) The Fed lowers the prime interest rate. C) The Fed raises the reserve requirement. D) The Fed purchases member bank reserves. Show Answer Correct Answer: A) The Fed sells government securities. 15. Which of these cities do not have a Federal Reserve Office? A) New York. B) Chicago. C) Minneapolis. D) San Diego. Show Answer Correct Answer: D) San Diego. 16. Fill in the blank:The Federal Reserve regulates banks to ensure the soundness of the banking system and safety of ..... A) Loans. B) Stocks. C) Deposits. D) Interest. Show Answer Correct Answer: C) Deposits. 17. In the month following the September 11th terrorist attack, GDP fell from 1.6% to ..... A) 1.1%. B) 1.2%. C) 1.0%. D) 1.5%. Show Answer Correct Answer: A) 1.1%. 18. When did Supply Side Economics become more popular? A) In the 1910s because of the US trade deficit. B) In the 1990s because of Globalization. C) In the 1970s because of high inflation. D) In the 1930s because of high unemployment. Show Answer Correct Answer: C) In the 1970s because of high inflation. 19. Widespread, massive unemployment ..... Severe drop in GDP ..... Very little investment ..... Inflation is very low ..... All of these describe which stage in the business cycle. A) Peak. B) Recession/Contraction. C) Depression/Trough. D) Expansion/Recovery. Show Answer Correct Answer: C) Depression/Trough. 20. What year was the Federal Reserve Act passed? A) 1813. B) 1853. C) 1913. D) 1963. Show Answer Correct Answer: C) 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 8Federal Reserve Quiz 9Federal Reserve Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books