ECON 201 Quiz 4 | Score 95/100 | American Military University

Week 6 - Quiz: 4 - Results

Attempt 1 of 2
Written Nov 23, 2025 10:21 PM - Nov 23, 2025 10:24 PM

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Questions for Quiz 4 (Week 6)

Question 1 points
At lower interest rates, the:

Question options:


Quantity of money demanded is lower


Money supply is lower


Money supply is indeterminate


Quantity of money demanded is higher

Question 2 points
What is the primary function of the Federal Reserve System?

Question options:


To regulate the U.S. banking system and control the money supply


To print and distribute currency

, To set tax policy and government budgets


To manage the national debt

Question 3 points

The Federal Open Market Committee (FOMC) is responsible for:

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Making decisions on monetary policy.


Supervising member banks.


Setting federal income tax rates.


Managing the federal budget deficit.

Question 4 points

What happens to interest rates when the Federal Reserve sells government
bonds?

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The effect on interest rates is unpredictable.


Interest rates decrease.


Interest rates increase.


Interest rates remain unchanged.

Question 5 points

From time to time, the Federal Reserve buys back government bonds from
the private sector through a process called:

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