Economics Quiz

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

• monies

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 _____.

• Principles of taxation

• Types of taxes

• Criteria for effective taxes

• Benefit principle

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.

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

The government agency that is responsible for the collection of taxes and enforcement of tax laws is

• Internal Revenue Agency

• Federal Reserve

• Bureau of Printing and engraving

• Internal Federal Reserve