This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the long term goal of the Federal Reserve? A) High inflation. B) Low inflation. C) Unstable inflation. D) Fast inflation. Show Answer Correct Answer: B) Low inflation. 2. The First Bank of the United States was charted in ..... A) 1791. B) 1855. C) 1897. D) 1683. Show Answer Correct Answer: A) 1791. 3. The CPI is up, and housing starts are at a fifteen-year high A) Tight Money. B) Easy Money. C) Do Nothing. D) None of above. Show Answer Correct Answer: A) Tight Money. 4. How many districts make up the Federal Reserve system? A) 10. B) 12. C) 15. D) 18. Show Answer Correct Answer: B) 12. 5. You go to buy a car and interest rates are sky high and the bank won't loan you the money. What is going on? A) Inflation. B) Recession-Bank is practicing tight money policies. C) Recovery-Bank is practicing expansionary policies. D) None of above. Show Answer Correct Answer: B) Recession-Bank is practicing tight money policies. 6. Which type of voter below would be most likely to ONLY vote for candidates from one party? A) Retrospective. B) Prospective. C) Straight ticket party line voter. D) Apathetic low-information voter. Show Answer Correct Answer: C) Straight ticket party line voter. 7. The Federal Reserve has three tools at their disposal. Which of the following is NOT a tool of monetary policy? A) Open-market operations. B) Changes in reserve requirements. C) Changes in interest rates. D) Changes to foreign policy. Show Answer Correct Answer: D) Changes to foreign policy. 8. The Governors most important function is participating in the ..... . A) Election of Reserve Bank presidents. B) Helping the President of the United States. C) Representing members of the Senate. D) Federal Open Market Committee. Show Answer Correct Answer: D) Federal Open Market Committee. 9. What is the most important responsibility of the Board of Governors of the Federal Reserve? A) Participating in the FOMC. B) Deciding what denominations of money to produce each year. C) Helping banks work out disputes with other banks. D) Providing FASFA information to students. Show Answer Correct Answer: A) Participating in the FOMC. 10. An economist might argue that a progressive income tax is effective because it is A) Simple. B) Profitable. C) Complex. D) Equitable. Show Answer Correct Answer: D) Equitable. 11. Who must confirm nominees to chair the Federal Reserve? A) Senate. B) Supreme Court. C) House. D) Cabinet Secretaries. Show Answer Correct Answer: A) Senate. 12. Which of these exerts the most direct control over interest rates? A) The Board of Governors. B) The Federal Reserve district banks. C) The Federal Open Market Committee. D) The Consumer Financial Protection Bureau. Show Answer Correct Answer: A) The Board of Governors. 13. Which part of the Fed is considered public (government)? A) FOMC. B) 12 Reserve Banks. C) Board of Governors. D) The President. Show Answer Correct Answer: C) Board of Governors. 14. Which part of the Fed is both public (government) and private in nature? A) The President. B) The 12 Reserve Banks. C) The FOMC. D) The Board of Governors. Show Answer Correct Answer: C) The FOMC. 15. Which of the following is directly controlled by the Federal Reserve? A) Tax and tariff policy. B) Government spending. C) Fiscal Policy. D) Monetary Policy. Show Answer Correct Answer: D) Monetary Policy. 16. When did the New York Federal Reserve (EROC) make their vault? A) 1918. B) 1924. C) 1916. D) 1926. Show Answer Correct Answer: B) 1924. 17. The interest rate that the Federal Reserve charges commercial banks for Overnight loans is called the ..... ? A) Discount rate. B) Monetary policy. C) Inside lag. D) Tight money policy. Show Answer Correct Answer: A) Discount rate. 18. Which of the following would NOT be included in M1? A) $ 20 in your pocket. B) $ 1000 in your checking account. C) $ 50, 000 in your Roth IRA. D) $ 6, 000 buried in your back yard. Show Answer Correct Answer: C) $ 50, 000 in your Roth IRA. 19. A ..... pays interest, but also allows people to write checks. A) Savings account. B) Certificate of deposit. C) Money market account. D) Checking account. Show Answer Correct Answer: C) Money market account. 20. Which of the following is an action the Federal Reserve might take? A) Increase government spending. B) Expand eligibility for Medicare. C) Lower interest rates. D) Prohibit excessive regulation of small business. Show Answer Correct Answer: C) Lower interest rates. ← 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 9Federal Reserve Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books