Monetary policy and federal reserve quiz

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  • 1/10 Questions

    Which of the following is not a function of money?

    • Medium of Exchange
    • Store of Value
    • Durability 
    • Unit of Account
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About This Quiz

Monetary policy is a tool through which the government controls the money supply. Play this exciting "Monetary Policy And Federal Reserve" quiz to learn more about the topic. This quiz contains questions ranging from easy, medium to hard levels that will familiarize you with the concept and will also gauge your understanding of the subject. Attempt the quiz to know more. If you find the quiz informative, do share it with others. All the best!

Monetary Policy And Federal Reserve Quiz - Quiz

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  • 2. 

    Which of the following entity make decisions regarding the Fed's purchases and sales of government securities:

    • Discount Committee (DC)

    • Federal Open Market Committee (FOMC)

    • Federal Deposit Insurance Commission (FDIC)

    • Federal Funds Committee (FFC)

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  • 3. 

    What are the government's two main monetary policy tools?

    • Inflation and spending

    • Taxes and inflation

    • Taxes and government spending

    • None of the above

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  • 4. 

    What would the federal government do with government spending in an inflationary environment?

    • Increase it

    • Do nothing

    • Decrease it

    • First increase it and then decrease it

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  • 5. 

    What would the federal government do with taxes if there was an economic downturn?

    • Increase them

    • Decrease them

    • First increase and decrease them

    • Keep them as it is

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  • 6. 

    When was the Federal reserve system established?

    • 1905

    • 1899

    • 1913

    • 1910

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  • 7. 

    Money that has value because it has been recognized by the government is called.

    • Currency

    • Commodity Money

    • Fiat Money

    • Coins

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  • 8. 

    Aim of monetary policy is to?

    • Bring economic sability

    • Prevent inflationary and recessionary economic periods

    • Prevent fiscal deficit

    • All of the above

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  • 9. 

    Which of the following measures enhanced financial institution competition while giving the Fed more authority over banks that are not members?

    • The Thrift Bailout Bill

    • The Federal Reserve Act.

    • The Equal Credit Opportunity Ac

    • The Monetary Control Act.

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  • 10. 

    Which of the following does not belong to the Federal Reserve System's purview?

    • To control the money supply

    • To supervise and regulate banks

    • To aid in the check clearing process

    • All of the above

    Rate this question:

Quiz Review Timeline (Updated): Aug 16, 2023 +

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  • Current Version
  • Aug 16, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Nov 13, 2022
    Quiz Created by
    Amit Mangal
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