Prelim 1 2007 - ECON 331: MONEY AND CREDIT PRELIMINARY EXAM...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 331: MONEY AND CREDIT PRELIMINARY EXAM 1: FALL 2007 1. Which of the following items is not included in the M2 monetary aggregate: a. Demand deposits b. Retail money market mutual fund shares c. Large-denomination time deposits d. All three above are included in M2 2. An open market purchase of bond by the Fed a. Always increases the monetary base b. Always increases the total reserves c. Always decreases the monetary base d. Always decreases total reserves 3. A venture capital firm protects its equity investment from moral hazard through which of the following means? a. It prohibits the borrowing firm from replacing its management. b. It writes contracts that prohibit the sale of an equity investment to the venture capital firm. c. It requires a 50% stake in the company. d. It places people on the board of directors to better monitor the borrowing firm's activities. 4. Which of the following is not a source of borrowings for a bank? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/27/2009 for the course ECON 331 taught by Professor Staff during the Fall '07 term at Cornell University (Engineering School).

Page1 / 2

Prelim 1 2007 - ECON 331: MONEY AND CREDIT PRELIMINARY EXAM...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online