#1
Which of the following is a tool used by the Federal Reserve to implement monetary policy?
Fiscal policy
Interest rates
Taxation
Trade policy
#2
What is the main goal of expansionary monetary policy?
Decrease money supply
Stabilize prices
Promote economic growth
Control inflation
#3
What is the name of the Federal Reserve's monetary policy-making body?
Federal Open Market Committee (FOMC)
Federal Advisory Council (FAC)
Board of Governors
Federal Reserve Banks
#4
In the United States, how many Federal Reserve districts are there?
#5
What is the primary objective of the Federal Reserve's monetary policy?
Stabilize exchange rates
Achieve full employment
Maximize government revenue
Minimize consumer debt
#6
Who is the current Chair of the Federal Reserve Board of Governors?
Jerome Powell
Janet Yellen
Ben Bernanke
Alan Greenspan
#7
Who is responsible for making key decisions regarding monetary policy in the United States?
The President
The Secretary of Treasury
The Federal Reserve Board of Governors
The Speaker of the House
#8
What is the federal funds rate?
Interest rate at which banks lend reserves to other banks overnight
Interest rate on loans to consumers and businesses
Interest rate set by the U.S. Treasury
Interest rate charged by the Federal Reserve for loans to commercial banks
#9
What happens to interest rates when the Federal Reserve implements contractionary monetary policy?
Interest rates decrease
Interest rates increase
Interest rates remain unchanged
Interest rates become negative
#10
Which of the following is NOT a function of the Federal Reserve System?
Conducting monetary policy
Supervising and regulating banks
Issuing currency
Setting fiscal policy
#11
What is the primary tool used by the Federal Reserve to conduct open market operations?
Buying and selling government securities
Adjusting reserve requirements
Changing the discount rate
Modifying the federal funds rate
#12
Which of the following is a characteristic of an expansionary monetary policy?
Increasing interest rates
Decreasing government spending
Reducing the money supply
Lowering reserve requirements
#13
What is the term used to describe the Federal Reserve's purchase of government securities?
Quantitative easing
Open market operations
Discount rate policy
Reserve requirement adjustment
#14
When the Federal Reserve sells government securities, what effect does it have on the money supply?
Increases the money supply
Decreases the money supply
Has no effect on the money supply
Makes the money supply more volatile
#15
Which of the following is a tool used by the Federal Reserve to directly control the money supply?
Reserve requirements
Open market operations
Discount rate
Federal funds rate
#16
Which of the following is NOT a monetary policy transmission mechanism?
Interest rates
Credit channels
Exchange rates
Income levels
#17
When the Federal Reserve conducts open market operations to sell government securities, what happens to bank reserves?
Bank reserves increase
Bank reserves decrease
Bank reserves remain unchanged
Bank reserves become volatile
#18
What is the term used to describe the process by which the Federal Reserve alters the money supply through buying or selling government securities?
Quantitative easing
Open market operations
Discount rate policy
Reserve requirement adjustment