Question

The fractional reserve banking system does not allow customers to withdraw all of their money from the bank at once.

Question 1 options:

	a) False
	b) True

Question 2 (1 point)

The Federal Reserve System resulted from a compromise between those who wanted a strong central bank and those who wanted no central bank.

Question 2 options:

	a) True
	b) False

Question 3 (1 point)

If the reserve requirement is 18.5%, what is the money multiplier?

Question 3 options:

	a) 5.4
	b) 18.5
	c) 1.9
	d) 20

Question 4 (1 point)

Federal Reserve board members serve for ______ years, but the Chair serves for _____.

Question 4 options:

	a) 4; 14 years
	b) 4; 4 years
	c) 14; 4 years
	d) 14; life

Question 5 (1 point)

_____ lags are shorter for monetary policy than for fiscal policy.

Question 5 options:

	a) Recognition
	b) Information
	c) Decision
	d) Implementation

Answer 1

Question 1 : a

Question 2 : b

Question 3 : c

Question 4 : c

Question 5 : a

These are the answers for the given multiple choice questions.