macroeconomics

macroeconomics - Which of the following statements is...

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Unformatted text preview: Which of the following statements is generally accurate to say of the Federal Reserve? Selected Answer: a and d Correct Answer: a and d Question 2 Multiple Choice 0 of 1 points If the Fed buys $1 million of government securities from Bank A, this action Selected Answer: a and c Correct Answer: increases Bank A's deposits a million. Question 3 True/False 0 of 1 points Members of the Board of Governors of the Federal Reserve are appointed by the President and approved by the Senate to serve a 14-year term. Selected Answer: false Correct Answer: true Question 4 Multiple Choice 1 of 1 points The interest rate that a commercial bank pays when it borrows from the Fed is the __________ rate. Selected Answer: discount Correct Answer: discount Question 5 Multiple Choice 1 of 1 points A Federal Reserve Bank is located in which of the following cities? Selected Answer: Minneapolis Question 5 Multiple Choice 1 of 1 points Correct Answer: Minneapolis Question 6 Multiple Choice 1 of 1 points If the Fed purchases government securities from a commercial bank, which of the following will happen? Selected Answer: a and d Correct Answer: a and d Question 7 Multiple Choice 1 of 1 points An "open market operation" is said to occur when the Fed Selected Answer: buys or sells government secu Correct Answer: buys or sells government secu Question 8 Multiple Choice 1 of 1 points If the Fed raises the discount rate at the same time it conducts an open market sale, it follows that the money supply will Selected Answer: fall. Correct Answer: fall. Question 9 Multiple Choice 0 of 1 points A decrease in the required reserve ratio __________ the money supply; an open market purchase __________ the money supply. Question 9 Multiple Choice 0 of 1 points Selected Answer: decreases; increases Correct Answer: increases; increases Question 10 Multiple Choice 0 of 1 points If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio, it follows that banks will now have __________, which they can use to extend loans and create new __________. Selected Answer: positive excess reserves; curre Correct Answer: positive excess reserves; chec When the Fed increases the discount rate so that it is much higher than the federal funds rate, eventually Selected Answer: reserves increase and the money supply increases. Correct Answer: reserves decrease and the money supply decreases. Question 2 Multiple Choice 1 of 1 points A(n) __________ in the required reserve ratio leads to a decrease in the money supply; a(n) __________ in the discount rate (relative to the federal funds rate) leads to an increase in the money supply. Question 2 Multiple Choice 1 of 1 points Selected Answer: increase; decrease Correct Answer: increase; decrease Question 3 True/False 0 of 1 points The Fed is one of the largest departments within the U.S....
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This note was uploaded on 04/03/2008 for the course MGT 300IW taught by Professor Allbriton,mitchell,bowers during the Spring '08 term at N. Arizona.

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macroeconomics - Which of the following statements is...

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