Fed Tools For Changing The Money Supply- Quiz

10 Questions

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Fed Tools For Changing The Money Supply- Quiz


Questions and Answers
  • 1. 
    The FED stands for the Federal Demand
    • A. 

      True

    • B. 

      False

  • 2. 
    The reserve requirement is used to raise and lower the money supply.
    • A. 

      True

    • B. 

      False

  • 3. 
    Open market operations are the raising and lowering of prices in markets across the U.S.
    • A. 

      True

    • B. 

      False

  • 4. 
    The Fed possesses the ability to change the money supply in America.
    • A. 

      True

    • B. 

      False

  • 5. 
    Conducting an  open market purchase can POTENTIALLY raise the money supply.
    • A. 

      True

    • B. 

      False

  • 6. 
    Banks can only borrow money from the Fed.
    • A. 

      True

    • B. 

      False

  • 7. 
    The Fed has a cap on the amount of money they can supply to the country.
    • A. 

      True

    • B. 

      False

  • 8. 
    The Federal Funds Rate Target is the target amount that the Fed strives to achieve.
    • A. 

      True

    • B. 

      False

  • 9. 
    The CEO of the Fed is a female.
    • A. 

      True

    • B. 

      False

  • 10. 
    The Fed provides an interest rate to all banks that borrow money from them.
    • A. 

      True

    • B. 

      False