This quiz works best with JavaScript enabled. Home > Monetary > Federal Reserve > Federal Reserve – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Federal Reserve Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The government may use expansionist policy to help the economy if ..... A) Supply is low and Demand is high. B) GDP is low and unemployment is high. C) Inflation is low and savings are high. D) Spending is low and the debt is high. Show Answer Correct Answer: B) GDP is low and unemployment is high. 2. Voting members of the FOMC include seven members of the ..... and presidents of the Federal Reserve Banks. A) Board of Governors. B) Presidents Council. C) Financial Institution League. D) Senate. Show Answer Correct Answer: A) Board of Governors. 3. Buying and selling US government securities (bonds) to raise and lower interest rates A) Fed Fund Rate. B) Reserve Requirement Rate. C) Discount Rate. D) Open Market Operation. Show Answer Correct Answer: D) Open Market Operation. 4. A ..... pays higher interest but has a fixed period of time. A) Savings account. B) Certificate of deposit. C) Money market account. D) Checking account. Show Answer Correct Answer: B) Certificate of deposit. 5. Kiana paid 3 bushels of corn for 5 flats of strawberries. This type of money is A) Commodity. B) Currency. C) Fiat. D) Representative. Show Answer Correct Answer: A) Commodity. 6. What group regulates stocks and financial services companies? A) Securities and Exchange Commission (SEC). B) National Labor Relations Board (NLRB). C) National Aeronautics and Space Administration (NASA). D) Federal Communications Commission (FCC). Show Answer Correct Answer: A) Securities and Exchange Commission (SEC). 7. Institution that regulates and oversees the nation's banks and is considered the Central Bank of the United States A) Federal Reserve. B) Federal Deposit Insurance Corporation. C) Securities and Exchange Commission. D) Bureau of Engraving and Printing. Show Answer Correct Answer: A) Federal Reserve. 8. This act, passed in 1978, began requiring the Fed chairman to report to Congress twice annually on monetary policy goals and objectives. A) Humphrey-Hawkins Act. B) Banking Act. C) Greenspan Act. D) Treasury Status Act. Show Answer Correct Answer: A) Humphrey-Hawkins Act. 9. The Federal Reserve was structured around geographic locations, but with improved ....., the district banks can locate near the institiutions they serve. A) Airports. B) Technology. C) Currency. D) Phones. Show Answer Correct Answer: B) Technology. 10. The Federal Reserve is responsible for implementing A) Monetary policy. B) Fiscal policy. C) Federal policy. D) Demand policy. Show Answer Correct Answer: A) Monetary policy. 11. The organization that regulates and monitors the flow of American money is called the ..... A) US Treasury Department. B) Senate Finance Committee. C) Internal Revenue Service. D) Federal Reserve System. Show Answer Correct Answer: D) Federal Reserve System. 12. What is a main goal of the Federal Reserve in its monetary policy? A) Lowering taxes. B) To curb recessions. C) Increasing government spending. D) Regulation of the stock market. Show Answer Correct Answer: B) To curb recessions. 13. Percentage of each deposit that banks must keep in reserves A) Revenue collection. B) Discount rate. C) Reserve requirement. D) Open market operations. Show Answer Correct Answer: C) Reserve requirement. 14. What percent of notes printed each year are $ 1 notes? A) 25%. B) 45%. C) 60%. D) 85%. Show Answer Correct Answer: B) 45%. 15. What is monetary policy? A) Provide financial services for commercial banks. B) Maintain stability of the financial system. C) Use changes in the money supply to fight recessions or inflations. D) None of above. Show Answer Correct Answer: C) Use changes in the money supply to fight recessions or inflations. 16. The federal funds market is the market in which: A) Banks borrow from the Fed. B) Bank customers borrow from their banks. C) Banks borrow from each other. D) The federal government borrows from the Fed. Show Answer Correct Answer: C) Banks borrow from each other. 17. The Federal Open Market Committee (FOMC) is part of the Federal Reserve and helps develop our government's ..... A) Monetary Policies. B) Employment Policies. C) Import/Export Policies. D) Budgetary Policies. Show Answer Correct Answer: A) Monetary Policies. 18. Which is a main goal of the Federal Reserve? A) Create a high level of inflation. B) Create a stable, healthy economy. C) Print currency for American citizens. D) Develop new laws for the United States. Show Answer Correct Answer: B) Create a stable, healthy economy. 19. If there is a recession, the Fed would most likely: A) Increase bank reserves by raising the discount rate. B) Increase bank reserves by buying government securities. C) Decrease bank reserves by raising the discount rate. D) Decrease bank reserves by selling government securities. Show Answer Correct Answer: B) Increase bank reserves by buying government securities. 20. Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply? A) An increase in the required reserve ratio. B) An increase in the discount rate. C) Purchases of bonds in open market operations. D) Higher taxes on interest income. Show Answer Correct Answer: C) Purchases of bonds in open market operations. ← 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 8Federal Reserve Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books