{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

problem set 1

# problem set 1 - Econ 716-31 Macroeconomics for Finance Lau...

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

1 Econ 716-31 Macroeconomics for Finance Lau Problem Set I Spring 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: 1/18/2010 (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 decrease 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. Treasury Department purchases and sales of US government bonds B. Federal Reserve purchases and sales of US government bonds C. Federal Reserve issues currency C. Treasury Department issues currency 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 ____ members on the Board of Governor of the Federal reserve Bank. 2. There are ___ Federal Reserve Districts. 3. FOMC stands for ________________________________. 4. There are __ members on the FOMC meeting. ____ are members of the Board of Governor and the others are _________________. 5. As of January 11, 2010, the target Fed Fund rate is ____ .

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

problem set 1 - Econ 716-31 Macroeconomics for Finance Lau...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online