Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following contributed to the creation of the Federal Reserve System?

   
   

   
   

   1. the bank panic of 1907

      
      
   
   

   2. the Great Depression

      
      
   
   

   3. the savings and loan crisis of the 1980s

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following contributed to the creation of the Federal Reserve System?

2. Question

   Which of the following controls the monetary base?

   A.

   the central bank

   B.

   the Treasury

   C.

   Congress

   D.

   commercial banks

   E.

   investment banks

   Which of the following controls the monetary base?

3. Question

   Which of the following is NOT a role of the Federal Reserve System?

   A.

   controlling bank reserves

   B.

   printing currency (Federal Reserve notes)

   C.

   carrying out monetary policy

   D.

   supervising and regulating banks

   E.

   holding reserves for commercial banks

   Which of the following is NOT a role of the Federal Reserve System?

4. Question

   Who oversees the Federal Reserve System?

   A.

   Congress

   B.

   the president of the United States

   C.

   the Federal Open Market Committee

   D.

   the Board of Governors of the Federal Reserve System

   E.

   the Reconstruction Finance Corporation

   Who oversees the Federal Reserve System?

5. Question

   Which of the following contributed to the financial crisis of 2008?

   A.

   excessive speculation

   B.

   inadequate regulation

   C.

   delays in aggressive action by the government

   D.

   low interest rates leading to a housing boom

   E.

   all of the above

   Which of the following contributed to the financial crisis of 2008?