pertemuan 14

PERTEMUAN 14

1. Which of the following is the most appropriate title for the
passage?
A. Banking
B. The Federal Reserve System
C. The Board of Governors
D. Monetary Policies

2. The word overseeing in paragraph 1 is closest in meaning to
A. supervising C. financing
B. maintaining D. stimulating

3. The word confirmed in the paragraph 1 could best be
replaced by
A. modified C. examined
B. considered D. approved

4. According to the passage, the principal responsibility of the
Federal Reserve System is
A. to borrow money
B. to regulate monetary policies
C. to print government securities
D. to appoint the Board of Governors

5. The word securities in the paragraph 2 is intended to mean
A. debs B. bonds C. protection D. confidence

6. What happen when the Federal Reserve provides too little
money?
A. Demand for loans increases.
B. Unemployment slows down.
C. Interest rates go up
D. Business expand

7. In paragraph 2, the author suggests that inflation is caused
by
A. high unemployment rates
B. too much money in the economy
C. very high fuel prices
D. a limited supply of goods

8. What does the author mean by the statement However, in
practice, the Federal Reserve does not stray from the
financial policies established by the executive branch of
the government?
A. The Fed more powerful than the executive branch of the
government.
B. The policies of the Fed and of the executive branch of the
government are not the same.
C. The Fed tends to follow the policies of the executive
branch of the government.
D. The Fed reports to the executive branch of the
government.

9. All of the following statements could be included in summary
of the passage EXCEPT:
A. The Federal Reserve is an independent agency of the
United States government.
B. The Federal Reserve controls the flow of money and
credit by buying and selling government securities.
C. The Federal Reserve issues new coins and currency to
banks.
D. The Federal Reserve receives its yearly budget from
Congress.