201_HW8_(12-04-09) - Due: 06/25/09 ECO201: MACROECONOMICS...

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Due: 06/25/09 ECO201: MACROECONOMICS Homework #8 Multiple-Choice Questions (one point each): Scantron E-882 1. In the United States monetary policy is the responsibility of the: A) U.S. Treasury. B) Department of Commerce. C) Board of Governors of the Federal Reserve System. D) U.S. Congress. 2. The three main tools of monetary policy are: A) tax rate changes, the discount rate, and open-market operations. B) tax rate changes, changes in government expenditures, and open-market operations. C) the discount rate, the reserve ratio, and open-market operations. D) changes in government expenditures, the reserve ratio, and the discount rate. 3. The Fed can change the money supply by: A) changing bank reserves through the sale or purchase of government securities. B) changing the quantities of required and excess reserves by altering the legal reserve ratio. C) changing the discount rate so as to encourage or discourage commercial banks in borrowing from the central banks. D) doing all of the above. 4. Open-market operations refer to: A) purchases of stocks in the New York Stock Exchange. B) the purchase or sale of government securities by the Fed. C) central bank lending to commercial banks. D) the specifying of loan maximums on stock purchases. 5.
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This note was uploaded on 12/18/2009 for the course ECONOMICS 122112 taught by Professor Kimrahg during the Spring '09 term at George Mason.

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201_HW8_(12-04-09) - Due: 06/25/09 ECO201: MACROECONOMICS...

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