4500 FINAL EXAM ECONOMICS ECONOMICS COURSE
2025/2026 | QUESTION BANK | VERIFIED QUESTIONS AND
ANSWERS GRADED A+ | MICRO & MACROECONOMIC
PRINCIPLES STUDY GUIDE | GUARANTEED SUCCESS
Which of these statements is true of the board of governors of the Fed?
The board of governors consists of six members; the term length is four years.
The board of governors is elected once every eight years by the citizens of the
United States.
The board of governors is appointed by the chair and serves a four-year term.
The board of governors consists of six members plus the chair; the term length
for members is fourteen years. - CORRECT ANSWER - The board of
governors consists of six members plus the chair; the term length for members
is fourteen years.
The position of chair of the Federal Reserve is filled in what way?
The chair of the Fed is elected by a vote of the members of Congress.
The chair of the Fed is appointed by the president of the United States and
confirmed by the US Senate.
The chair of the Fed is appointed by the president of the United States and
confirmed by the House of Representatives and the Senate.
The chair of the Fed is elected by a congressional committee of economic
experts. - CORRECT ANSWER - The chair of the Fed is appointed by the
president of the United States and confirmed by the US Senate.
,When the Federal Reserve was created in 1913, what were its two primary
purposes?
To regulate the financial sector of the US economy and maintain the gold
standard
To print money (real bills) and lend only to banks committed to investment in
"real" economic activity
To regulate the financial sector and be a "lender of last resort" to commercial
banks
To maintain the gold standard and be a "lender of last resort" to commercial
banks - CORRECT ANSWER - To regulate the financial sector and be a
"lender of last resort" to commercial banks
Which of these categories is the largest asset on the Federal Reserve's balance
sheet—by far?
Gold
Repurchase agreements
Gold, silver, and bitcoin
Securities - CORRECT ANSWER - Securities
The board of governors of the Federal Reserve has three primary
responsibilities, which are
maintenance of the gold standard, the operations of the Fed, and monetary
policy.
,oversight of the printing of money, commercial bank regulation, and the
operations of the Fed.
monetary policy, fiscal policy, and the operations of the Fed.
the operations of the Fed, commercial bank regulation, and monetary policy -
CORRECT ANSWER - the operations of the Fed, commercial bank
regulation, and monetary policy
The securities that the Federal Reserve holds on its balance sheet include
privately issued stocks, US Treasury securities, and federal agency debt.
municipal bonds, privately issued stocks, and US Treasury securities.
US Treasury securities, municipal bonds, and federal agency debt.
US Treasury securities, federal agency debt, and privately issued mortgage-
backed securities. - CORRECT ANSWER - US Treasury securities, federal
agency debt, and privately issued mortgage-backed securities.
The Federal Reserve district banks are primarily responsible for
interacting with the state governments within their districts, tracking the flow of
money in and out of their districts, and tracking the flow of commerce in and
out of their districts.
check-clearing system, supervising and examining banks in their districts, and
keeping track of the economy in their districts.
, the check-clearing system, supervising and examining banks in their districts,
and interacting with the state governments within their districts.
supervising and examining banks in their districts, keeping track of the
economy in their districts, and tracking the flow of money in and out of their
districts. - CORRECT ANSWER - check-clearing system, supervising and
examining banks in their districts, and keeping track of the economy in their
districts.
Which of these are among the primary responsibilities of the Federal Reserve?
Conducting monetary policy and printing US currency
Conducting monetary policy and acting as the fiscal agent of the US Treasury
Repaying the federal government debt and setting market interest rates
Repaying the federal government debt and enforcing financial market
regulations - CORRECT ANSWER - Conducting monetary policy and acting
as the fiscal agent of the US Treasury
The biggest change in the Federal Reserve's balance sheet between March 2007
and May 2013 was the __________ on the __________ side of the balance
sheet.
increase in currency outstanding; liability
jump in depository institution deposits; liability
decrease in repurchase agreements; asset
2025/2026 | QUESTION BANK | VERIFIED QUESTIONS AND
ANSWERS GRADED A+ | MICRO & MACROECONOMIC
PRINCIPLES STUDY GUIDE | GUARANTEED SUCCESS
Which of these statements is true of the board of governors of the Fed?
The board of governors consists of six members; the term length is four years.
The board of governors is elected once every eight years by the citizens of the
United States.
The board of governors is appointed by the chair and serves a four-year term.
The board of governors consists of six members plus the chair; the term length
for members is fourteen years. - CORRECT ANSWER - The board of
governors consists of six members plus the chair; the term length for members
is fourteen years.
The position of chair of the Federal Reserve is filled in what way?
The chair of the Fed is elected by a vote of the members of Congress.
The chair of the Fed is appointed by the president of the United States and
confirmed by the US Senate.
The chair of the Fed is appointed by the president of the United States and
confirmed by the House of Representatives and the Senate.
The chair of the Fed is elected by a congressional committee of economic
experts. - CORRECT ANSWER - The chair of the Fed is appointed by the
president of the United States and confirmed by the US Senate.
,When the Federal Reserve was created in 1913, what were its two primary
purposes?
To regulate the financial sector of the US economy and maintain the gold
standard
To print money (real bills) and lend only to banks committed to investment in
"real" economic activity
To regulate the financial sector and be a "lender of last resort" to commercial
banks
To maintain the gold standard and be a "lender of last resort" to commercial
banks - CORRECT ANSWER - To regulate the financial sector and be a
"lender of last resort" to commercial banks
Which of these categories is the largest asset on the Federal Reserve's balance
sheet—by far?
Gold
Repurchase agreements
Gold, silver, and bitcoin
Securities - CORRECT ANSWER - Securities
The board of governors of the Federal Reserve has three primary
responsibilities, which are
maintenance of the gold standard, the operations of the Fed, and monetary
policy.
,oversight of the printing of money, commercial bank regulation, and the
operations of the Fed.
monetary policy, fiscal policy, and the operations of the Fed.
the operations of the Fed, commercial bank regulation, and monetary policy -
CORRECT ANSWER - the operations of the Fed, commercial bank
regulation, and monetary policy
The securities that the Federal Reserve holds on its balance sheet include
privately issued stocks, US Treasury securities, and federal agency debt.
municipal bonds, privately issued stocks, and US Treasury securities.
US Treasury securities, municipal bonds, and federal agency debt.
US Treasury securities, federal agency debt, and privately issued mortgage-
backed securities. - CORRECT ANSWER - US Treasury securities, federal
agency debt, and privately issued mortgage-backed securities.
The Federal Reserve district banks are primarily responsible for
interacting with the state governments within their districts, tracking the flow of
money in and out of their districts, and tracking the flow of commerce in and
out of their districts.
check-clearing system, supervising and examining banks in their districts, and
keeping track of the economy in their districts.
, the check-clearing system, supervising and examining banks in their districts,
and interacting with the state governments within their districts.
supervising and examining banks in their districts, keeping track of the
economy in their districts, and tracking the flow of money in and out of their
districts. - CORRECT ANSWER - check-clearing system, supervising and
examining banks in their districts, and keeping track of the economy in their
districts.
Which of these are among the primary responsibilities of the Federal Reserve?
Conducting monetary policy and printing US currency
Conducting monetary policy and acting as the fiscal agent of the US Treasury
Repaying the federal government debt and setting market interest rates
Repaying the federal government debt and enforcing financial market
regulations - CORRECT ANSWER - Conducting monetary policy and acting
as the fiscal agent of the US Treasury
The biggest change in the Federal Reserve's balance sheet between March 2007
and May 2013 was the __________ on the __________ side of the balance
sheet.
increase in currency outstanding; liability
jump in depository institution deposits; liability
decrease in repurchase agreements; asset
