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

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

View Full Document Right Arrow Icon
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 ____ members on the Board of Governor of the Federal reserve Bank.
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.

Page1 / 3

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

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