Federal Exam Review

Which of these describes the Fed’s Board of Governors?

• There are fourteen of them, elected by popular vote every four years.

• There are seven of them, chosen by the president and Congress to serve fourteen-year terms.

• There are fourteen of them, chosen by the president and Congress to serve seven-year terms.

• There are seven of them, each of them also serving in a Congressional financial subcommittee.

Which is a good synonym for the word barter in the term barter economy?

• trade

• fiat

• specie

• monetary

States receive most of their intergovernmental revenue funds from

• other states

• taxes

• the federal government

• local governments

The terms proportional, progressive and regressive refer to _____.

Taxes levied on the wages, salaries, and other income of individuals is known as

• Individual income tax

• Flat tax

• Proportional tax

• Sales tax

The discount rate and the federal funds rate are both types of what?

• interest rates

• quantitative easing

• monetarism

• passive fiscal policies

Why is the Federal Open Market Committee considered the Fed’s primary monetary policy-making body?

• It has the power to raise and lower interest rates.

• It has the power to enforce consumer protection regulations.

• It maintains the payments system for checks and electronic money transfers.

• It ensures that the public has accurate information about the terms of credit cards and loans.

The Federal Deposit Insurance Corporation (FDIC) was created to:

• insure customers' money against inflation

• allow customers to make deposits at federal banks

• insure customer deposits if a bank fails

• insure banks if a customer doesn't make enough deposits.

How many Federal Reserve districts are there?

• 1

• 6

• 12

• 50

Which of these ensures that the U.S. government does not own the Fed?

• Private state banks are required to buy shares in the Fed

• Private state banks are not allowed to buy shares in the Fed

• Private individuals are not allowed to buy shares in the Fed

• Private national banks are required to purchase shares in the Fed.