Chapter 14 and 15

1.

1 point

The amount of money the Fed charges it member banks is called the

discount rate

Prime rate

fractional lending

initial rate

2.

1 point

Buying and selling government securities, called the _______________ is the major tool the Fed uses to control the money supply

market supply

savings program

bond supply

open-market operations

3.

1 point

Which of the following is not a characteristic of money

Stable in value

Divisible

edible

Durable

4.

1 point

The Federal Reserve Act created the Federal Reserve System of Banks in what year?

1890

1912

1913

1907

5.

1 point

Which of the following is not part of the Federal Reserve system?

Federal Advisory Council

FOMC

12 Federal Reserve Banks

State Branch Banks

6.

1 point

What are the three functions of Money?

Tracking tool

Unit of Accounting

Medium of Exchange

Store of Value

7.

1 point

Only the Federal Reserve can issue money?

True

False

8.

1 point

The current national Bank is called the Federal Reserve

True

False

9.

1 point

Name the denominations of paper currency used in the United States Today?

1, 2, 5, 10, 20, 50

1, 2, 5, 10, 20, 50, 100 and 500

100, 50, 20, 10, 5, 2 and 1

100, 50, 20, 10, 5 and 1

10.

1 point

Which of the following is not a form of acceptable payment?

Cash

Debit

Check

Promissory Note

11.

1 point

What is the FOMC?

Federal Open Meeting Commission

Fiscal Organization Money Committee

Federal Open Market Committee

Fiscal Organizing Monetary Commission

12.

1 point

The United States has always had a "National Bank" of one form or another

True

False

13.

1 point

Money that has value because a government has established it as acceptable for payment of debts is also known as

required

fiat money

public money

legal

14.

1 point

Which of the following is not a function of the Federal Reserve

Supervise Member Banks

Regulate the money supply

Mint coins

Supply paper currency

15.

1 point

Who appoints the members of the Federal Reserve?

Speaker of the House of Representatives

President of the United States

Board of Governors

Member Banks

16.

1 point

What mechanism is most commonly used to create exchanges in our economy?

Barter

begging

money

trading

17.

1 point

The amount of money banks must keep on hand in their vaults or with the federal reserve is called the

penalty fund

Federal minimums

savings requirement

Reserve requirement

18.

1 point

Who is the current chairman of the Federal Reserve

Edwin Snowden

Paul Vokker

Alan Greenspan

Ben Bernake

19.

1 point

Most money is moved today through what mechanism?

Debit cards

Banks transferes

Electronic Funds Transfer

Automatic Teller Machines

20.

1 point

What is the term for members of the Board of Governors for the Federal Reserve

12 years

14 years

5 years

10 years