U.S. Federal Reserve Bank Economist Interest Practice Questions
The free U.S. Federal Reserve Bank Economist questions that deal with interest, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #2
Which of the following tools can the Fed use to influence interest rates?
Correct answer: D
Explanation
Open market operations involve the buying and selling of government securities to influence interest rates and the money supply.
Question #3
When does the Federal Reserve typically raise interest rates?
Correct answer: B
Explanation
The Federal Reserve tends to raise interest rates during periods of rising inflation to curb excessive price increases.
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