Quiz 11 - Attempt Score: 21.00 out of a possible 23.00...

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21.00 out of a possible 23.00 (91.3%) Exam Score: 21.00 out of a possible 23.00 (91.3%) Exam Time: 36 minutes Question 1: The amount of money creation is monitored carefully by the Fed since it is their responsibility to maintain a stable money supply and to promote ____________. Type: Multiple Choice Points awarded: 1.00 / 1.00 Your answer(s): •economic growth Correct answer(s): good rock concerts economic growth good soccer matches none of the above Question 2: The equation of Legal Reserves - Required Reserves = ____________ Reserves describes the relationships of fractional reserve banking. Type: Multiple Choice Points awarded: 1.00 / 1.00 Your answer(s): •Excess Correct answer(s): Excess Emotional Extenuating None of the above Question 3: A major cost of the Fed’s “tight money” approach in this example is that _________________________ . Type: Multiple Choice Points awarded: 0.00 / 1.00 Your answer(s): •an additional two million people have become employed Correct answer(s): the economy’s Output has decreased to 2500 billion units the Nominal Production GDP has increased to $6084 billion an additional two million people have become employed the Price Level (Average Price) has decreased to $2.00 Question 4: If $200 cash is deposited in Bank A with a 10 percent reserve requirement, Bank A must hold ______back in a legal reserve account. Type: Multiple Choice Points awarded: 1.00 / 1.00 Your answer(s): •$20 Correct answer(s): $90 $50 $20 $10 Question 5: After meeting all regulatory requirements of the federal and state governments and the Fed, a bank may then begin operations and _______________. Type:
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Quiz 11 - Attempt Score: 21.00 out of a possible 23.00...

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