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WorksheetsPersonal Finance and Economics 6120/ Mr. Phillips
Total questions: 58
Worksheet time: 3580secs
Name
Class
Date
1.
"The Fed" refers to the....
a)
Federal Bureau of Investigation
b)
Federal Government
c)
Federal Reserve System
d)
Federal Income Tax
2.
The Federal Reserve
a)
is made up of 12 district banks and 25 branch banks.
b)
is managed by a 12-member board of directors.
c)
is made up of district banks that operate independently from one another.
3.
Fee charged to borrow money
a)
Inflation
b)
Interest
c)
Discount rate
d)
Reserve requirement
4.
Which part of the Fed decides when to raise or lower interest rates?
a)
Board of Governors
b)
Advisory Committee
c)
Chairman
d)
Federal Open Market Committee
5.
Influencing the economy by changing the reserve requirement is called:
a)
Fiscal policy
b)
Monetary policy
c)
Tight Money
d)
Easy Money
6.
What does Inflation do to the value of money?
a)
Makes it go up.
b)
Makes it go down.
c)
Makes it stay the same.
7.
Does increasing the money supply cause inflation or deflation?
a)
Inflation
b)
Deflation
8.
The primary role of the Federal Reserve Bank is to steer the economy by
a)
controlling the budget
b)
setting spending levels.
c)
controlling the money supply.
d)
loaning out money.
9.
The primary role of the Federal Reserve Bank is to steer the economy by
a)
controlling the budget
b)
setting spending levels.
c)
controlling the money supply.
d)
loaning out money.
10.
In a recession, the Fed would likely
a)
Increase the supply of money in the economy
b)
Decrease the supply of the money in the economy
11.
What is the gold standard?
a)
one unit of currency is equal to a set amount of gold
b)
the level by which gold is judged
c)
the use of gold as a medium of exchange
d)
the idea that gold can buy everything
12.
The American Dollar bill is an example of
a)
Commodity Currency
b)
Representative Currency
c)
Fiat Currency
d)
Public Currency
13.
The Federal Reserve can increase __________, which makes banks more selective when loaning out money
a)
Reserve Requirements
b)
Percentage/Earnings Ratios
c)
Dividends
d)
Blue Chip Stocks
14.
If the economy is expanding too quickly, the Federal Reserve will institute which type of monetary policy?
a)
Expansionary
b)
Contractionary
c)
Equanimitous
d)
Whole Dollar
15.
The Fed keeps a certain amount of money out of circulation. This is referred to as....
a)
Reserve requirement
b)
Emergency Fund
c)
Stockpile
d)
Hoard
16.
The tools and strategies used to stabilize the economy
a)
Fiscal policy
b)
Monetary policy
c)
Tight Money
d)
Easy Money
17.
Lowering interest rates to stimulate the economy is called:
a)
Fiscal policy
b)
Monetary policy
c)
Easy Money
d)
Tight Money
18.
In a recession, the Fed would likely
a)
Increase the supply of money in the economy
b)
Decrease the supply of the money in the economy
19.
number of federal reserve districts
a)
5
b)
10
c)
12
d)
21
20.
Money loses its value when it
a)
It becomes too plentiful
b)
becomes too portabale
c)
is divisible
d)
is durable
21.
The Federal Reserve Bank is both centralized and decentralized.
a)
True
b)
False
22.
The goal of monetary policy is to
a)
sell bonds
b)
reduce unemployment
c)
seek price stability
d)
red and blue
23.
Lowering the reserve requirement will reduce
a)
unemployment
b)
inflation
24.
The Fed selling securities to banks will increase
a)
inflation
b)
unemployment
25.
Each Federal Reserve district president reports to the
a)
senate
b)
governor
c)
board of directors
d)
finance committee
26.
Federal Reserve head offices each have a ___ member board of directors.
a)
4
b)
9
c)
14
d)
20
27.
Which of these is not a function of the Federal Reserve?
a)
provide financial services to banks
b)
manage the federal deficit
c)
supervise and regulate banks
d)
conduct monetary policy
28.
Which of these is NOT an advisory council to the the Federal Reserve Board of Governors?
a)
thrift institutions advisor council
b)
state advisory council
c)
federal advisory council
d)
consumer advisory council
29.
The largest US note currency in circulation si
a)
$50
b)
$100
c)
$500
d)
$1,000
30.
The __ is responsible for producing US coin.
a)
coin institute
b)
US mint
c)
Fed Reserve BAnk
d)
secretary of states office
31.
US notes are designed and printed by the
a)
Bureau of Engraving and Printing
b)
Note Production Foundation
c)
Comptroller of Currency
d)
Currency Product Office
32.
What is the electronic payment delivery system most often used to process low-dollar recurring retail payments?
a)
ACH
b)
Fedwire
c)
Debit Track
d)
ATM
33.
Which part of the Fed decides when to raise or lower interest rates?
a)
Board of Governors
b)
Advisory Committee
c)
Chairman
d)
Federal Open Market Committee
34.
The American Dollar bill is an example of
a)
Commodity Currency
b)
Representative Currency
c)
Fiat Currency
d)
Public Currency
35.
What is the gold standard?
a)
one unit of currency is equal to a set amount of gold
b)
the level by which gold is judged
c)
the use of gold as a medium of exchange
d)
the idea that gold can buy everything
36.
If the Fed wanted to contract or tighten the economy to help fight inflation, they might
a)
Increase reserves to limit what banks can loan out
b)
Lower the interest rate
c)
Decrease reserves allowing banks to loan more
d)
Decrease government spending
37.
If the Fed wanted to expand or ease monetary policy, which might they do?
a)
Increase reserves, limiting what banks can loan
b)
Increase the interest rate
c)
Decrease the interest rate
d)
Lower taxes
38.
The primary role of the Federal Reserve Bank is to steer the economy by
a)
controlling the budget
b)
setting spending levels.
c)
controlling the money supply.
d)
loaning out money.
39.
A sum of money paid to shareholders of a corporation out of its earnings.
a)
index
b)
dividend
c)
profit
d)
invest
40.
Represents shares of ownership in a company.
a)
stock
b)
portfolio
c)
volume
d)
industry
41.
A particular market where stocks and bonds are traded.
a)
market capitalization
b)
portfolio
c)
stock market
d)
shareholder
42.
A holder or owner of stock in a company or corporation.
a)
stock market
b)
shareholder
c)
portfolio
d)
industry
43.
What is the price at which stock is bought and sold?
a)
Par Value
b)
Stated value
c)
Authorized value
d)
Market value
44.
It is free to buy stocks
a)
True
b)
False
45.
People who own stocks are guaranteed a return on the money they have invested in stocks.
a)
TRUE
b)
FALSE
46.
Stocks represent ownership in a corporation.
a)
TRUE
b)
FALSE
47.
One way stockholders make money is by selling their stock for more money than they paid for it.
a)
TRUE
b)
FALSE
48.
The two major stock exchanges are
a)
NASDAQ & NYSE
b)
Dow Jones Industrial Average & S&P 500
c)
NYSE & American
d)
NASDAQ & DJIA
49.
When the stock market does well for a long time, it is called a _______ market.
a)
bear
b)
bull
c)
fish
d)
horse
50.
When the market consistently doesn't do well for a long period of time, it is called a ________ market.
a)
bull
b)
bear
c)
fish
d)
horse
51.
What does a stock represent?
a)
a loan you make to a company
b)
a percentage of ownership of a company
c)
a contract for a company's goods and services
d)
stocks are just tools used to make money
52.
What does a stock represent?
a)
a loan you make to a company
b)
a percentage of ownership of a company
c)
a contract for a company's goods and services
d)
stocks are just tools used to make money
53.
What is NASDAQ?
a)
The biggest stock market in the world
b)
What stocks are called when they are bought and sold
c)
Certificates certifying you own a stock
d)
An automated system for trading stocks
54.
What is the goal of an investor?
a)
Buy low and sell high
b)
Keep a stock for their entire life
c)
Open a new investment account
d)
Help a company get bigger
55.
A bear market is
a)
When the market is doing good
b)
When the market is doing bad
c)
When the market is going steady
d)
When the market is rapidly unchanging
56.
A bull market is
a)
When the market is doing bad
b)
When the market is going steady
c)
When the market is doing good
d)
When the market is rapidly unchanging
57.
What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A special type of grocery store that sells stocks.
d)
A type of bank that gives out loans to new businesses.
58.
The stock market is a physical place.
a)
Yes, it's located in most major cities around the world.
b)
No, trading is all done online.
c)
Yes and no, there are physical places where stocks are sold, but they are also sold virtually.
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