COM 303 FINAL EXAM WITH QUESTIONS AND ANSWERS 100%
CORRECT LATEST UPDATE
The Federal Reserve System is the
a. federal government agency that collects taxes and spends these receipts on tanks,
bridges, employees' salaries, etc.
b. company that delivers packages to your front door.
c. central bank of the United States.
d. federal government agency that collects and disseminates all the economic data that
economists are interested in - ANSWER C
The_____Federal Reserve System began operations in
a. 1834.
b. 1896.
c. 1914.
d. 1935. - ANSWER C
a. seven persons, each appointed to a seven-year term.
b. seven persons, each appointed to a fourteen-year term.
c. fourteen persons, each appointed to a seven-year term. d. twelve persons, each
appointed to a seven-year term.
e. twelve persons, each appointed to a fourteen-year term. - ANSWER B
The United States is divided into_____Federal Reserve districts, each with a district
bank.
a. three
b. eight
c. twelve
,d. twenty - ANSWER C
The Board of Governors of the Federal Reserve is part of a larger policy-making group
called the
a. Senate Banking Committee.
b. Federal Deposit Insurance Corporation.
c. American Banking Association.
d. Federal Open Market Committee. - ANSWER D
Which of the following is not a major responsibility of the Fed?
a. supplying the economy with paper money
b. providing check-clearing services
c. supervising member banks
d. acting as fiscal agent for the Treasury
e. All of the above are major responsibilities of the Fed. - ANS: E
Which of the following is not a major responsibility of the Fed?
a. controlling the money supply
b. acting as banker for the federal government c. setting tax rates
d. acting as a lender of last resort - ANS: C
Which of the following is incorrect?
a. The Fed serves as the lender of last resort.
b. The Fed serves as a fiscal agent for the U.S. Treasury.
c. One of the most important functions of the Fed is to control the money supply of the
country.
d. The federal government is the Fed's banker. -ANSWER D
, When commercial banks need more Federal Reserve Notes,
a.shey call the Bureau of Engraving and Printing, and the desired quantity is delivered.
b. they call the Board of Governors, which delivers the requested amount.
c. they ask their customers to exchange their Federal Reserve Notes for U.S. Treasury
securities.
d. they call the Treasury, which delivers the requested amount.
e. they call their Federal Reserve District Bank, which delivers the requested amount. -
ANSWER E
When a check is written on an account at Bank A and deposited in Bank B, the reserve
account of _____ will rise and reserves of the entire banking system will ____.
a. Bank A; rise
b. Bank A; remain constant
c. Bank B; rise
d. Bank B; remain constant - ANSWER D
The Fed
a. can examine the books of a member bank without warning.
a. can examine the records of a member bank with advance notice.
b. may examine the records of a member bank upon approval by the bank.
c. may never access the records of a privately owned bank. - ANS A
By supervising member banks, we mean the Fed
a. Fed's advisory board will help the member banks in managing their assets and
liabilities.
b. Fed's Open Market Committee will advise the member banks regarding purchase and
sale of government securities.
c. Fed's Board of Governors will advise the member banks regarding the suitable
interest rates to be charged on various loans.
CORRECT LATEST UPDATE
The Federal Reserve System is the
a. federal government agency that collects taxes and spends these receipts on tanks,
bridges, employees' salaries, etc.
b. company that delivers packages to your front door.
c. central bank of the United States.
d. federal government agency that collects and disseminates all the economic data that
economists are interested in - ANSWER C
The_____Federal Reserve System began operations in
a. 1834.
b. 1896.
c. 1914.
d. 1935. - ANSWER C
a. seven persons, each appointed to a seven-year term.
b. seven persons, each appointed to a fourteen-year term.
c. fourteen persons, each appointed to a seven-year term. d. twelve persons, each
appointed to a seven-year term.
e. twelve persons, each appointed to a fourteen-year term. - ANSWER B
The United States is divided into_____Federal Reserve districts, each with a district
bank.
a. three
b. eight
c. twelve
,d. twenty - ANSWER C
The Board of Governors of the Federal Reserve is part of a larger policy-making group
called the
a. Senate Banking Committee.
b. Federal Deposit Insurance Corporation.
c. American Banking Association.
d. Federal Open Market Committee. - ANSWER D
Which of the following is not a major responsibility of the Fed?
a. supplying the economy with paper money
b. providing check-clearing services
c. supervising member banks
d. acting as fiscal agent for the Treasury
e. All of the above are major responsibilities of the Fed. - ANS: E
Which of the following is not a major responsibility of the Fed?
a. controlling the money supply
b. acting as banker for the federal government c. setting tax rates
d. acting as a lender of last resort - ANS: C
Which of the following is incorrect?
a. The Fed serves as the lender of last resort.
b. The Fed serves as a fiscal agent for the U.S. Treasury.
c. One of the most important functions of the Fed is to control the money supply of the
country.
d. The federal government is the Fed's banker. -ANSWER D
, When commercial banks need more Federal Reserve Notes,
a.shey call the Bureau of Engraving and Printing, and the desired quantity is delivered.
b. they call the Board of Governors, which delivers the requested amount.
c. they ask their customers to exchange their Federal Reserve Notes for U.S. Treasury
securities.
d. they call the Treasury, which delivers the requested amount.
e. they call their Federal Reserve District Bank, which delivers the requested amount. -
ANSWER E
When a check is written on an account at Bank A and deposited in Bank B, the reserve
account of _____ will rise and reserves of the entire banking system will ____.
a. Bank A; rise
b. Bank A; remain constant
c. Bank B; rise
d. Bank B; remain constant - ANSWER D
The Fed
a. can examine the books of a member bank without warning.
a. can examine the records of a member bank with advance notice.
b. may examine the records of a member bank upon approval by the bank.
c. may never access the records of a privately owned bank. - ANS A
By supervising member banks, we mean the Fed
a. Fed's advisory board will help the member banks in managing their assets and
liabilities.
b. Fed's Open Market Committee will advise the member banks regarding purchase and
sale of government securities.
c. Fed's Board of Governors will advise the member banks regarding the suitable
interest rates to be charged on various loans.
