U.S. Federal Reserve Bank Economist Money Practice Questions
The free U.S. Federal Reserve Bank Economist questions that deal with money, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #5
How does the Federal Reserve influence the money supply?
Correct answer: A
Explanation
The Federal Reserve can influence the money supply by adjusting reserve requirements for banks, which affects how much money they can lend.
Question #6
What is the primary tool the Fed uses to control the money supply?
Correct answer: B
Explanation
Open market operations are the main tool for controlling the money supply by buying and selling government securities.
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