Directions How to Answer

Aptitude Test Topic: Reading Comprehension

Reading Comprehension questions are designed to test a wide range of abilities that are required in order to read and understand the kinds of prose commonly encountered in advanced studies.

Directions

Directions

This passage is accompanied by questions about its content. For each question, select the best answer among the five choices. Answer all questions on the basis of what the passage states or implies.

To give the answer click/tap the option alphabet for your answer choice. for correct answer green check and for wrong answer a red cross will appear along with a button to show explanation with or without video of the question answer.

Reading Comprehension: Inference Practice MCQ

Question Statement:

The Federal Reserve is the central banking system of the United States. The roles of the Federal Reserve include regulating the monetary policy and supply, preventing financial panics, and supervising banking institutions. The Federal Reserve was created early in the twentieth century primarily in response to the frequent financial panics that would cripple the U.S. economy, most prominent of which was the Panic of 1907. The powers of the Federal Reserve have expanded throughout the years, usually in response to other financial disasters like the Great Depression. Recent evidence suggests the Federal Reserve is essentially powerless to prevent the destabilizing force that is our boom and bust economy.

With which of these statements about the Federal Reserve would the author most likely agree?

The Federal Reserve should be reformed

The Federal Reserve has been successful at preventing financial panic

The creation of the Federal Reserve was a mistake

The Federal Reserve has little power over preventing economic recessions

The American economic system offers numerous benefits

Explanation:

Correct Answer: D

The author of this passage notes towards the end of the passage that "recent evidence suggests the Federal Reserve is essentially powerless to prevent the destabilizing force that is our boom and bust economy." The author does not suggest that the creation of the Federal Reserve was necessarily a mistake or that it needs to be reformed. He simply feels that the Federal Reserve has little power to prevent economic recessions. From the author’s comment about the boom and bust nature of the economy, he would likely contend that the economy needs to be reformed, not the Federal Reserve.

Question: 6 Test: 1 of 1 Next Test

Tests

You are taking Aptitude Test No. 1

Each aptitude test is comprised of 10 except the last test which might have fewer than 10 in some topics.

You are at question (MCQ) number 6 and Test Number 1 of Reading Comprehension: Inference. To deal with Reading Comprehension questions, you must take lesson on the subject. In case of science and Art subjects revise your text books and in case of general aptitude topics take lessons from the topic page.

The question:

The Federal Reserve is the central banking system of the United States. The roles of the Federal .... with options: The Federal Reserve should be reformed, The Federal Reserve has been successful at preventing financial panic, The creation of the Federal Reserve was a mistake, The Federal Reserve has little power over preventing economic recessions can be solved with the concepts and understanding of Reading Comprehension.