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WorksheetsThe Fed and Taxes Test
Total questions: 12
Worksheet time: 6mins
The discount rate and the federal funds rate are both types of what?
quantitative easing
interest rates
monetarism
passive fiscal policies
States receive most of their intergovernmental revenue funds from
other states
local governments
taxes
federal government
The terms proportional, regressive, and progressive refer to _____
principles of taxation
criteria for effective taxes
types of taxes
benefit principle
The FICA deduction taken from your paycheck is
Social Security and Medicare
Medicare and sales tax
Medicare and tax loopholes
sales tax and flat tax
Which of the following is one of the three functions of money?
store of value
scarcity
divisibility
portability
an institution that oversees and regulates the banking system and controls the monetary base
Board of Governors
central bank
open market committee
monetary policy
Oversees the entire banking system, 7 members appointed by the president and approved by the Senate; serve 14 year terms
Board of Governors
open market committee
Federal Reserve
FDIC
The fraction of bank deposits that a bank holds as reserves.
balance sheet effect
reserve requirement
discount rate
monetary policy
The discount rate is ______
the interest rate banks pay to other banks to balance their overnight funds
the interest rate the Fed charges on loans to banks
the interest rate paid by customers to the Fed
none of these is correct
Which of these exerts the most direct control over interest rates?
the Board of Governors
the Federal Reserve district banks
The Federal Open Market Committee
the Consumer Financial Protection Bureau
Which of these is a feature of open market operations?
The Fed sells government securities
The Fed lowers the prime interest rate
The Fed raises the reserve requirement
The Fed purchases member bank reserves
Who appoints members of the Fed's Board of governors?
the President
House of Representatives
Senate
Chair of the Board of Governors
