solution 1 - Econ 716-21 Macroeconomics for Finance Lau...

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1 Econ 716-21 Macroeconomics for Finance Lau Problem Set I Fall 2010 Instructions: 1. Answer all questions. 2. Please form study group of up to 3 persons and work on the problem set. 3. Show your formulas and steps clearly. 4. Due date: 10/25/2010 (M) @8am [To answer the questions in part I and II, check the Federal Reserve website.] Part I: Multiple choice questions (Circle the correct answer) (3 questions; 2 points each) 1. To increase the money supply, the Federal Reserve A. buy government bonds B. sell government bonds C. buy corporate bonds D. sell corporate bonds 2. Open-market operations are A. Federal Reserve purchases and sales of US government bonds B. Federal Reserve issues currency C. Treasury Department issues currency D. Treasury Department purchases and sales of US government bonds 3. FOMC ________ change the Fed Fund Target rate between the scheduled FOMC meetings. A. cannot B. can C. never D. always Part II: Fill in the blanks (8 questions; 2 points each) 1. There are __7_ _ members on the Board of Governor of the Federal reserve Bank. 2. There are __12_ _ Federal Reserve Districts.
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This note was uploaded on 11/06/2010 for the course ECON 716-2 taught by Professor Prof.man-luilau during the Fall '10 term at University of San Francisco.

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solution 1 - Econ 716-21 Macroeconomics for Finance Lau...

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