During a class discussion, Abigail asked her teacher about the main role of the Federal Reserve in the economy. What is the primary purpose of the Federal Reserve?
Unit 6 Review: Monetary & Fiscal Policy
10th Grade
•50 Qs
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Unit 6 Review: Monetary & Fiscal Policy
Quiz
•
Social Studies
•
10th Grade
•
Medium
Travis Gower
Used 7+ times
FREE Resource
50 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Regulating international trade
Controlling inflation
Providing insurance for bank deposits
Regulating stock markets
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is not a responsibility of the Federal Reserve?
Setting interest rates
Supervising financial institutions
Collecting federal taxes
Maintaining financial stability
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the two primary objectives of the Federal Reserve's dual mandate?
Ensuring maximum employment and price stability
Managing interest rates and controlling inflation
Overseeing the banking system and maintaining economic growth
Facilitating government borrowing and regulating foreign exchange
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During a classroom discussion, Aiden asked how the Federal Reserve aims to achieve its dual mandate. What was the teacher's response?
By adjusting the money supply
By setting fiscal policy
By regulating international trade
By issuing executive orders
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the likely impact on the money supply if the Federal Reserve decides to increase both the Reserve Requirement and the Discount Rate?
Increase
Decrease
No change
It depends on other factors
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one method the Federal Reserve uses to control inflation?
Increasing the money supply
Lowering taxes
Adjusting the federal funds rate
Subsidizing exports
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Isla is studying economics and wants to understand what the federal funds rate is. Can you help her?
The interest rate banks charge each other for loans
The interest rate on government bonds
The rate at which the Federal Reserve lends money to commercial banks
The rate of inflation as measured by the Consumer Price Index (CPI)
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