Texas Pre-License - Real Estate Finance:
Level 3 Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
In the United States, it is a federal law that all public and private business adhere to the same
monetary acceptance guidelines.
True or False? - CORRECT ANSWER False
*In the US, private business are able to make their own decisions on they type of legal tender they
accept.*
One of the main purposes of the Federal Reserve is to conduct the _____ policy of the United States. -
CORRECT ANSWER monetary
The Federal Reserve was ultimately successful as it aimed to provide services to the government,
financial institutions, and the public.
True or False? - CORRECT ANSWER True
*The Federal Reserve was meant to offer services to all participants in the US economy. Previous
attempts at a government banking were unsuccessful as they were mostly in a position to serve and
protect themselves.*
The Federal Reserve System is composed of:
-twelve core banks located in Washington, DC
-a core federal bank backed by twelve government officials
-multiple member banks spread throughout the United States with a minimum of twelve public
members
-twelve member banks spread throughout the United States - CORRECT ANSWER twelve
member banks spread throughout the United States
By becoming a member of the Federal Reserve System:
-Banks are able to borrow money from the Fed and must abide by federal reserve rules and
regulations.
-Banks are required to store all deposits within the system and must keep a public record of banking
activities.
, -Banks are able to borrow money from the Fed and are required to store all deposits within the
system.
-Banks are able to borrow money from the Fed and must keep a public record of banking activities. -
CORRECT ANSWER Banks are able to borrow money from the Fed and must abide by federal
reserve rules and regulations.
The Federal Reserve System acts according to the monetary policy, making all member banks agents
of the federal government.
True or False? - CORRECT ANSWER False
*While Congress establishes overarching objectives for the Fed, they relinquish control over the
operational conduct of monetary policy. This makes the Federal Reserve (and all member banks) an
independent agent of the federal government.*
centralized United States bank created to conduct monetary policy and stabilize the U.S. economy -
CORRECT ANSWER Federal Reserve System
the 1913 act that created the Federal Reserve - CORRECT ANSWER Federal Reserve Act
United States coins and currency good for all debts, public charges, taxes, and dues - CORRECT
ANSWER legal tender
refers to the actions of central banks to achieve big, macroeconomic policy objectives
*such as: price stability, full employment, and stable economic growth* - CORRECT ANSWER
monetary policy
legal tender used as a medium of exchange - CORRECT ANSWER money
Interest rates are manipulated by either giving or restricting money flow to commercial banks. -
CORRECT ANSWER true
The Fed has at its disposal three instruments for implementing its monetary policy by influencing the
money supply. The three tools are known as:
-the interest rate, the reserve requirement, and open-market operations
-the discount rate, open-market operations and the deposit requirements
Level 3 Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
In the United States, it is a federal law that all public and private business adhere to the same
monetary acceptance guidelines.
True or False? - CORRECT ANSWER False
*In the US, private business are able to make their own decisions on they type of legal tender they
accept.*
One of the main purposes of the Federal Reserve is to conduct the _____ policy of the United States. -
CORRECT ANSWER monetary
The Federal Reserve was ultimately successful as it aimed to provide services to the government,
financial institutions, and the public.
True or False? - CORRECT ANSWER True
*The Federal Reserve was meant to offer services to all participants in the US economy. Previous
attempts at a government banking were unsuccessful as they were mostly in a position to serve and
protect themselves.*
The Federal Reserve System is composed of:
-twelve core banks located in Washington, DC
-a core federal bank backed by twelve government officials
-multiple member banks spread throughout the United States with a minimum of twelve public
members
-twelve member banks spread throughout the United States - CORRECT ANSWER twelve
member banks spread throughout the United States
By becoming a member of the Federal Reserve System:
-Banks are able to borrow money from the Fed and must abide by federal reserve rules and
regulations.
-Banks are required to store all deposits within the system and must keep a public record of banking
activities.
, -Banks are able to borrow money from the Fed and are required to store all deposits within the
system.
-Banks are able to borrow money from the Fed and must keep a public record of banking activities. -
CORRECT ANSWER Banks are able to borrow money from the Fed and must abide by federal
reserve rules and regulations.
The Federal Reserve System acts according to the monetary policy, making all member banks agents
of the federal government.
True or False? - CORRECT ANSWER False
*While Congress establishes overarching objectives for the Fed, they relinquish control over the
operational conduct of monetary policy. This makes the Federal Reserve (and all member banks) an
independent agent of the federal government.*
centralized United States bank created to conduct monetary policy and stabilize the U.S. economy -
CORRECT ANSWER Federal Reserve System
the 1913 act that created the Federal Reserve - CORRECT ANSWER Federal Reserve Act
United States coins and currency good for all debts, public charges, taxes, and dues - CORRECT
ANSWER legal tender
refers to the actions of central banks to achieve big, macroeconomic policy objectives
*such as: price stability, full employment, and stable economic growth* - CORRECT ANSWER
monetary policy
legal tender used as a medium of exchange - CORRECT ANSWER money
Interest rates are manipulated by either giving or restricting money flow to commercial banks. -
CORRECT ANSWER true
The Fed has at its disposal three instruments for implementing its monetary policy by influencing the
money supply. The three tools are known as:
-the interest rate, the reserve requirement, and open-market operations
-the discount rate, open-market operations and the deposit requirements
