Sample Exam Questions III

Sample Exam Questions III - Sample Exam Questions III 1. In...

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

View Full Document Right Arrow Icon
Sample Exam Questions III 1. In the U.S. the right to issue currency is held by: A. The Federal Reserve. B. The U.S. Treasury. C. The Office of the Comptroller of the Currency. D. The U.S. Mint. 2. Keeping interest rates stable is: A. The most important goal for a central bank. B. The focus of the central bank, stable interest rates will have all other goals achieved. C. A secondary goal for central banks. D. Not a goal of the central bank. 3. Which of the following statements is most correct? A. The Fed can control the amount of reserves. B. The Fed can control the make up of the monetary base. C. The Fed can control the size of the monetary base but not the price of its components. D. The Fed can control the size of the monetary base and the price of its components. 4. The fact that there is a market for federal funds enables banks to: A. Make fewer loans than they would otherwise. B. Borrow more from the Fed. C. Hold less quantity of excess reserves than they would otherwise hold. D. Hold less in required reserves. 5. If the current market federal funds rate equals the target rate and the demand for reserves increases, the likely response in the federal funds market will be: A. The market federal funds rate will decrease. B. The market rate will equal the target rate. C. The market federal funds rate will increase. D. b and c 6. Identify an advantage and a disadvantage of requiring the Fed to state an explicit numerical target for inflation. 7. What is the general consensus among economists and other monetary policy experts regarding the usefulness of the monetary policy instruments available to central banks? 8. In what ways do the regional Federal Reserve Banks influence monetary policy?
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 02/09/2010 for the course FIN 355 taught by Professor Phillips,s during the Spring '08 term at Syracuse.

Page1 / 4

Sample Exam Questions III - Sample Exam Questions III 1. In...

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