WorksheetsFAC- Federal Reserve
Total questions: 15
Worksheet time: 23mins
Name
Class
Date
1.
The Federal Reserve will lower the reserve requirement, lower the discount rate, and purchase government securities when:
a)
they want to impact a Presidential elections
b)
they are getting ready to issue currency
c)
the economy needs to be stimulated
d)
the economy needs to be slowed down
2.
Expansionary monetary policy is sometimes called
a)
circulation money policy
b)
easy money policy
c)
lending money policy
d)
Raise Taxes
3.
The interest rate the Fed charges other banks
a)
discount rate
b)
monetarism
c)
prime rate
d)
open market operations
4.
What happens to the money circulation, when the FED orders a tight money policy?
a)
more money is put out into circulation
b)
less money is put into circulation
c)
circulation stays the same
d)
interest rates rise
5.
Which of these describes the Fed’s Board of Governors?
a)
There are fourteen of them, elected by popular vote every four years
b)
There are seven of them, chosen by the president and Congress to serve fourteen-year terms.
c)
There are fourteen of them, chosen by the president and Congress to serve seven-year terms.
d)
There are seven of them, each of them also serving in a Congressional financial subcommittee
6.
How many Federal Reserve districts are there?
a)
1
b)
5
c)
7
d)
12
7.
The ___ District Federal Reserve Bank serves Michigan
a)
Memphis
b)
Richmond
c)
Columbia
d)
Chicago
8.
The CPI is up, and housing starts are at a fifteen-year high
a)
Tight Money
b)
Easy Money
c)
Do Nothing
9.
We are in a recession. Factory orders are down, and the economy appears to be slumping.
a)
Tight Money
b)
Easy Money
c)
Do Nothing
10.
One of the most important jobs of the Feds is
a)
to supply banks with enough money so they do not run out during the business day.
b)
to encourage the President to appoint members to the FOMC.
c)
to go to the Reserve Banks and check their records and accounts.
d)
to keep the economy healthy by managing the country's monetary supply.
11.
Does increasing the money supply cause inflation or deflation?
a)
Inflation
b)
Deflation
12.
Influencing the economy by changing the reserve requirement is called:
a)
Fiscal policy
b)
Monetary policy
c)
Tight Money
d)
Easy Money
13.
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
14.
The current chairperson of the Federal Reserve is:
a)
Jerome Powell
b)
Alan Greenspan
c)
Ben Bernanke
d)
Janet Yellen
15.
To maintain financial stability a central bank may have to provide emergency funds, though at a price, to protect depositors and in extreme cases to prevent a systemic crisis in the financial system.
What the term used to describe this?
a)
Lender of first resort
b)
Lender of penultimate resort
c)
Lender of last resort
d)
Lender of past resort
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