Printed Page 266(cont.)

Tackle the Test: Multiple-Choice Questions

  1. Question

    Which of the following is a function of the Federal Reserve System?



    1. examine commercial banks



    2. conduct fiscal policy



    3. conduct monetary policy



    		A.
    		B.
    		C.
    		D.
    		E.
    Which of the following is a function of the Federal Reserve System?

  2. Question

    Which of the following financial services does the Federal Reserve provide for commercial banks?



    1. clearing checks



    2. holding reserves



    3. making loans



    		A.
    		B.
    		C.
    		D.
    		E.
    Which of the following financial services does the Federal Reserve provide for commercial banks?

  3. Question

    When the Fed makes a loan to a commercial bank, it charges

    		A.
    		B.
    		C.
    		D.
    		E.
    When the Fed makes a loan to a commercial bank, it charges

  4. Question

    If the Fed purchases U.S. Treasury bills from a commercial bank, what happens to bank reserves and the money supply?
    Bank reservesMoney supply

    		A.
    		B.
    		C.
    		D.
    		E.
    If the Fed purchases U.S. Treasury bills from a commercial bank, what happens to bank reserves and the money supply?

  5. Question

    When banks make loans to each other, they charge the

    		A.
    		B.
    		C.
    		D.
    		E.
    When banks make loans to each other, they charge the
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