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Federal Reserve System Syed Musadiq Shah & Ziaullah Khan VS Malik Fazle Wadood & Bilal Saleem

Financial institutions Quiz

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Financial institutions Quiz

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Q 1): The Federal Reserve act of 1913 intended the FED to have tools of monetary policy i.e._______

Federal Reserve System

Syed Musadiq Shah & Ziaullah KhanVS Malik Fazle Wadood & Bilal SaleemQ 1): The Federal Reserve act of 1913 intended the FED to have tools of monetary policy i.e._______

A: Reserve requirement.B: Discount Loans.C: Open market operationD: All of the above.

Ans: BQ 2): The Federal Open Market Committee have the authority to directs_____A: Reserve requirement.B: Open Market operation.C: Discount LoanD: All of the above.

Ans: BQ 3): The European central bank is established under_____A: European Banking Act 1937.B: Matellel Treaty.C: Euro Banking Act. D: None of the above.

Ans: DQ 4): When central banks are ranked from least independent to most independent, Inflation Performance to be the best for countries with the most ____________

A: Independent Central BanksB: Dependent Central Banks C: Dependent FRB.D: Independent FRB.

Ans: AQ 5):Central Bank actions directly affect the following except______ A: Money SupplyB: Interest RatesC: Reserve RequirementD: Amount of Credit

Ans: CQ 6): Federal Reserve Bank evaluate proposed mergers and application for bank to contract their activities______A: TrueB: False

Ans: BQ 7): KIBOR Mean_______A: Fed RateB: Commercial Bank Rate C: Both A & BD: None of TheseAns: AQ 8): When Central Bank government securities sale ______A: No change in Money Supply B: Money Supply DecreaseC: Money Supply IncreaseD: None of TheseAns: B Q 9): An independent Fed also makes the coordination of monetary and fiscal policy______A: DifficultB: EasyC: Both A & BD: Average Ans: AQ 10); If there is increase in reserve requirement, What is the effect _______A: Supply curve shift right sideB: Supply curve shift left sideC: No change in Supply curveD: None of the aboveAns: D