Financial Literacy Exam Questions and
Answers 100% Pass
Which is characteristic of both democracy and
capitalism? - ✔✔Considerable individual choice
The United States Federal Reserve System was
established to __________ - ✔✔regulate the amount of money in circulation
The Federal Reserve System was established in
1913 to ___________ - ✔✔regulate the banking system
The major purpose of the Federal Reserve Act
(1913) was to __________ - ✔✔insure the bank deposits of individuals
Reducing interest rates to stimulate economic
growth is a function of the __________ - ✔✔Federal Reserve System
1
Katelyn Whitman, All Rights Reserved © 2025
,When the Federal Reserve Board lowers interest
rates, it is most likely attempting to ___________ - ✔✔stimulate consumer
spending
The Federal Reserve System helps to regulate _________ - ✔✔the nation's
money supply
A similarity between the Bank of the United
States, created in 1791, and the present-day Federal
Reserve System is that both were established to __________ - ✔✔Regulate
the money supply
The Federal Reserve System was created in 1913
to _______________ - ✔✔Regulate the money supply
A strong United States dollar in the world market
would be most likely to aggravate which domestic
economic issue? - ✔✔The trade deficit
The United States sell manufactured products to
2
Katelyn Whitman, All Rights Reserved © 2025
, Third World nations and purchases raw materials
from these nations. This fact illustrates ____________ - ✔✔Economic
protectionism
Which statement is a fact rather than an opinion?
A. Trade barriers will not save American jobs.
B. The Hawley-Smoot Tari Act set tariffs at the
highest level in United States history.
C. High tariffs are the best way to equalize the
competition between American workers and
their counterparts abroad.
D. Protectionism is a misguided policy and
should be opposed. - ✔✔The Hawley-Smoot Tariff Act set tariffs at the
highest level in United States history
3
Katelyn Whitman, All Rights Reserved © 2025
Answers 100% Pass
Which is characteristic of both democracy and
capitalism? - ✔✔Considerable individual choice
The United States Federal Reserve System was
established to __________ - ✔✔regulate the amount of money in circulation
The Federal Reserve System was established in
1913 to ___________ - ✔✔regulate the banking system
The major purpose of the Federal Reserve Act
(1913) was to __________ - ✔✔insure the bank deposits of individuals
Reducing interest rates to stimulate economic
growth is a function of the __________ - ✔✔Federal Reserve System
1
Katelyn Whitman, All Rights Reserved © 2025
,When the Federal Reserve Board lowers interest
rates, it is most likely attempting to ___________ - ✔✔stimulate consumer
spending
The Federal Reserve System helps to regulate _________ - ✔✔the nation's
money supply
A similarity between the Bank of the United
States, created in 1791, and the present-day Federal
Reserve System is that both were established to __________ - ✔✔Regulate
the money supply
The Federal Reserve System was created in 1913
to _______________ - ✔✔Regulate the money supply
A strong United States dollar in the world market
would be most likely to aggravate which domestic
economic issue? - ✔✔The trade deficit
The United States sell manufactured products to
2
Katelyn Whitman, All Rights Reserved © 2025
, Third World nations and purchases raw materials
from these nations. This fact illustrates ____________ - ✔✔Economic
protectionism
Which statement is a fact rather than an opinion?
A. Trade barriers will not save American jobs.
B. The Hawley-Smoot Tari Act set tariffs at the
highest level in United States history.
C. High tariffs are the best way to equalize the
competition between American workers and
their counterparts abroad.
D. Protectionism is a misguided policy and
should be opposed. - ✔✔The Hawley-Smoot Tariff Act set tariffs at the
highest level in United States history
3
Katelyn Whitman, All Rights Reserved © 2025
