ECO 320 quiz 1 - 1 1 out of 1 points The policymaking institution that determines the money supply sets the rules for how checks are cleared and how

ECO 320 quiz 1 - 1 1 out of 1 points The policymaking...

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1 1 out of 1 points The policymaking institution that determines the money supply, sets the rules for how checks are cleared and how banks obtain new currency, and determines what activities banks may or may not engage in and whether banks are operating in a prudent fashion is the Answer Selected Answer: Federal Reserve System. Correct Answer: Federal Reserve System. Question 2 1 out of 1 points The expected rate of change of prices is known as the Answer Selected Answer: expected inflation rate. Correct Answer: expected inflation rate. Question 3 1 out of 1 points The simple equation that can be used to predict how the Federal Reserve will change interest rates is known as Answer Selected Answer: the Taylor rule. Correct Answer: the Taylor rule. Question 4
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1 out of 1 points The nominal interest rate minus the expected inflation rate equals the Answer Selected Answer: real interest rate. Correct Answer: real interest rate. Question 5 1 out of 1 points Economic policy affects Answer Selected Answer: the entire financial system. Correct Answer: the entire financial system. Question 6 1 out of 1 points When the overall level of business activity declines persistently, there is said to be Answer Selected Answer: a recessio n. Correct Answer: a recessio n. Question 7 1 out of 1 points Earning interest on past interest is Answer
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Selected Answer: compoundi ng. Correct Answer: compoundi ng. Question 8 1 out of 1 points During the 2000s, banks became complacent about making mortgage loans because Answer Selected Answer: the banks counted on housing prices to keep appreciating.
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