Free Federal Reserve Bank Exam Questions and Answers
Federal Reserve Bank Exam is one of the US Federal tests covered here. There is no government-wide federal entrance exam: each agency runs its own screen, from OPM's USA Hire battery to Customs and Border Protection's own entrance examinations.
The first 10 questions on this page are free to read, answers included — no account and no card. A plan opens the rest of the bank, the full timed practice test and your weak-topic reporting.
Last updated: August 30, 2026
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- US Federal
- Questions in our bank
- 1000+
- Free to read
- First 10, with answers
- Our test mode duration & pass mark
- 130 mins · 70%
- Verified answers
- Reviewed weekly
- Practice format
- Multiple choice
Recommended: Switch to Test Mode to start a practice test that simulates the real exam experience.
Question #1
A bank has a reserve requirement of 10%. If it has $1,000,000 in deposits, how much must it hold in reserves?
Please select an optionIncorrectCorrect answer: D
Banks must hold 10% of their deposits in reserves, so $1,000,000 * 10% = $100,000.
Was this answer correct?Question #2
If the Federal Reserve wants to decrease the money supply, what action might it take?
Please select an optionIncorrectCorrect answer: A
Selling government securities takes money out of circulation, thereby decreasing the money supply.
Was this answer correct?Question #3
What is the primary purpose of the Federal Reserve?
Please select an optionIncorrectCorrect answer: C
The primary purpose of the Federal Reserve is to manage the U.S. money supply to promote economic stability.
Was this answer correct?Question #4
A bank experiences a sudden influx of deposits. What is the first action the bank should take according to regulatory requirements?
Please select an optionIncorrectCorrect answer: C
The bank must ensure it meets the reserve requirement after a sudden influx of deposits.
Was this answer correct?Question #5
During a recession, the Federal Reserve may decide to lower the federal funds rate. What is the expected outcome of this action?
Please select an optionIncorrectCorrect answer: C
Lowering the federal funds rate typically encourages borrowing, which stimulates spending and investment.
Was this answer correct?Question #6
What happens when the Federal Reserve raises reserve requirements for banks?
Please select an optionIncorrectCorrect answer: B
Raising reserve requirements means banks must hold more in reserve, decreasing the available funds for lending.
Was this answer correct?Question #7
If the Federal Reserve conducts open market operations and buys securities, what is likely to happen?
Please select an optionIncorrectCorrect answer: D
Buying securities injects liquidity into the economy, increasing the money supply.
Was this answer correct?Question #8
A bank's capital ratio is below the required level. What might the Federal Reserve require?
Please select an optionIncorrectCorrect answer: D
The Federal Reserve may require the bank to increase its capital to ensure stability and compliance.
Was this answer correct?Question #9
If the economy is experiencing rapid inflation, which action could the Federal Reserve take?
Please select an optionIncorrectCorrect answer: C
Increasing the reserve requirement reduces the amount banks can lend, helping to combat inflation.
Was this answer correct?Question #10
A consumer is considering a loan. If the Federal Reserve raises interest rates, what effect might this have?
Please select an optionIncorrectCorrect answer: A
Higher interest rates typically increase the cost of borrowing, making loans more expensive.
Was this answer correct?
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FAQ
- Q1: What is the Federal Reserve Bank Exam exam?
- A: Federal Reserve Bank Exam is a US Federal certification exam. Judging by the questions in our bank, it concentrates on reserve, federal, monetary, bank and economy.
- Q2: What topics does the Federal Reserve Bank Exam exam cover?
- A: Questions in our Federal Reserve Bank Exam bank cluster around reserve, federal, monetary, bank, economy, banks, inflation and lend. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for Federal Reserve Bank Exam?
- A: Work through the Federal Reserve Bank Exam practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real Federal Reserve Bank Exam exam questions?
- A: They are drawn from officially released past questions and from community members who have sat Federal Reserve Bank Exam. Answers are verified and updated weekly.
- Q5: Where do I register for the Federal Reserve Bank Exam exam?
- A: Register through US Federal directly. Exampractice is not affiliated with US Federal and does not administer the exam.
- Q6: Is there a free Federal Reserve Bank Exam sample?
- A: Yes. Every Federal Reserve Bank Exam page shows a free sample of real questions. Upgrading opens the full bank and the practice test.