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Unformatted text preview: < Your location: Assessments > View f—‘ill Submissions > View attempt December 6, 2009 10:59 PM View Attempt 1 of 1
Title: Ch 14 Quiz
Started: Submitted: Time spent: 00:15:06 Total score: DDI'IB Refer to the figure below. December 6, 2009 11:14 PM BIS = 60% Total score adjusted by 0.0 Maximum possible score: 5 IWhy is the demand for money curye downward sloping? [L
U: C . Score: \-1.-n.-1 Student Value Response . Because as interest
money. . Because as 0% 'nterest
:he cost of
the cost of
increases. . BECEILJSE low
of it. 0,-‘1 Correct answer Ci Feedback Incorrect. This describes a positiye relationship. The demand for
money curye downward sloping. When will the Fed sell government bends? Student Value Correct answer Feedback
Response A. Never. B. When it
economy. . When it 100% 5 Correct. If the Federal Reserve wishes to increase the money
wants to supply to stimulate the economy, it buys government bonds. To
slow the decrease the money supply to slow the economy down, the Fed
economy sells government bonds.
down. D. When it
the money supply.
Score: 1,-‘1 LL
0 Refer to the figure below. Which graph correctly depicts an open market sale by the Fed?
n" ul‘ u.‘ li' Illlx'l'L'Vl mm
IILInL “II x .ll' .ﬁ Fl Mnnm \-I--n.'_\ Student Value Correct Answer Feedback
Response a. The graph
on the left. 3 B. The graph 100% 5 Correct. An open market sale shifts the supply of money to the
on the left and leads to higher interest rates.
right. C. Both
graphs. 0. Neither
graph. Score: 1,-‘1 If the Fed wants to keep the interest rate constant, it will have to: Student Value Correct Answer Feedback
Response A. Increase E
increases. B. Increase
decreases. C. Leave the 0% Incorrect. The interest rate would fluctuate freely if money supply
money did not change with changes in the demand for money.
in the Hnmnnrl Fnr it: Score: Lower interest rates brought on by the Fed will cause the dollar to [L
U Score: Dune uplllullu nu. money. . Decrease the reserve
shifts to the
left. on than foreign goods. Student
Response . appreciate; more
expensive . appreciate; cheaper . depreciate; more
expensive . depreciate; cheaper 1n Value 100% Correct Answer .This will make U.S. goods Feedback Correct. Lower interest rates brought on by the Fed will cause the
dollar to depreciate. This will ultimately change the demand and
supply of goods and services around the globe because it will
make U.S. goods cheaper than foreign goods. ...
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