#1
What is the primary role of the Federal Reserve System in the United States?
Conducting foreign policy
Regulating the stock market
Controlling the money supply and interest rates
Managing social security programs
#2
What is the term used to describe the rate at which banks borrow from the Federal Reserve?
Prime rate
Discount rate
Federal funds rate
Libor rate
#3
Which Federal Reserve district is New York located in?
First District
Second District
Third District
Fourth District
#4
Which of the following is NOT a primary tool of monetary policy used by the Federal Reserve?
Open market operations
Reserve requirements
Taxation
Discount rate
#5
What is the primary responsibility of the Federal Reserve Bank of New York within the Federal Reserve System?
Setting interest rates
Conducting open market operations
Regulating banks' reserve requirements
Issuing currency
#6
Which tool does the Federal Reserve use to influence the money supply?
Fiscal policy
Discount rate
Trade policy
Environmental regulations
#7
What is the term used to describe the percentage of deposits that banks must hold in reserve?
Liquidity ratio
Inflation rate
Prime rate
Fractional reserve requirement
#8
What is the function of the Federal Open Market Committee (FOMC) within the Federal Reserve System?
Setting fiscal policy
Regulating banks
Conducting monetary policy
Enforcing trade agreements
#9
How does the Federal Reserve address inflation concerns?
Lowering interest rates
Selling government securities
Increasing the discount rate
Raising reserve requirements
#10
What is the primary purpose of the discount rate set by the Federal Reserve?
Encouraging borrowing by lowering interest rates
Regulating the money supply
Discouraging excessive borrowing
Controlling government spending
#11
In the context of the Federal Reserve, what does the term 'dual mandate' refer to?
Stable prices and maximum employment
Balancing the federal budget
Trade deficit reduction
Global economic stability
#12
How does the Federal Reserve influence interest rates in the open market?
Buying and selling government securities
Issuing new currency
Taxation policies
Direct control over bank lending rates
#13
In the context of the Federal Reserve, what is the dual mandate?
Stable prices and maximum employment
Balanced budget and trade surplus
Global economic leadership
Monetary policy independence
#14
What is the primary tool the Federal Reserve uses to directly control the money supply?
Open market operations
Discount rate
Reserve requirements
Federal funds rate
#15
How does the Federal Reserve influence long-term interest rates?
Manipulating the discount rate
Changing the federal funds rate
Conducting open market operations with long-term securities
Adjusting reserve requirements
#16
Which economic indicator is closely monitored by the Federal Reserve to gauge inflation?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment rate
Producer Price Index (PPI)
#17
What is the term used for the process by which the Federal Reserve buys securities to inject money into the economy?
Tightening
Quantitative easing
Contractionary policy
Open market operations