macroeconomicsexamIIII

macroeconomicsexamIIII - Which of the following lists two...

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Which of the following lists two things that both decrease the money supply? a. make open market purchases, raise the reserve requirement ratio b. make open market purchases, lower the reserve requirement ratio c. make open market sales, raise the reserve requirement ratio d. make open market sales, lower the reserve requirement ratio 2. (Points: 2.0) Which of the following does the Federal Reserve not do? a. conduct monetary policy b. act as a lender of last resort c. convert Federal Reserve Notes into gold d. serve as a bank regulator 3. (Points: 2.0) If you deposit $100 of currency into a demand deposit at a bank, this action by itself a. does not change the money supply. b. increases the money supply. c. decreases the money supply. d. has an indeterminate effect on the money supply. 4. (Points: 2.0) To decrease the money supply, the Fed could a. sell government bonds. b. increase the discount rate. c. increase the reserve requirement. d. All of the above are correct. 5. (Points: 2.0) A bank s liabilities include
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a. both its reserves and the deposits of its customers. b. neither its reserves nor the deposits of its customers. c. its reserves, but not the deposits of its customers. d. the deposits of its customers, but not its reserves. 6. (Points: 2.0) The Federal Reserve does all except which of the following? a. control the supply of money b. control the value of money c. make loans to individuals d. regulate the banking system 7. (Points: 2.0) Which of the following is not included in M1? a. currency b. demand deposits c. savings deposits d. travelers' checks 8. (Points: 2.0) Reserve requirements are regulations concerning a. the amount banks are allowed to borrow from the Fed. b. the amount of reserves banks must hold against deposits. c. reserves banks must hold based on the number and type of loans they make. d. the interest rate at which banks can borrow from the Fed. 9. (Points: 2.0)
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Money a. is more efficient than barter. b. makes trades easier. c. allows greater specialization. d. All of the above are correct. 10. (Points: 2.0) Suppose banks desire to hold no excess reserves. If the reserve ratio is 10 percent and a bank receives a new deposit of $10. Then this bank a. must increase required reserves by $1. b. will initially see its total reserves increase by $1. c. will be able to make new loans up to a maximum of $1. d. All of the above are correct. 11. (Points: 2.0) Suppose a bank has $200,000 in deposits and $190,000 in loans. It has loaned out all it can. It has a reserve ratio of a. 2.5 percent. b. 5 percent. c. 9.5 percent. d. 10 percent. 12. (Points: 2.0) Which of the following best illustrates the unit of account function of money? a. You list prices for candy sold on your Web site, www.sweettooth.com, in dollars.
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This note was uploaded on 02/06/2012 for the course ECON 2106 taught by Professor Bergin during the Spring '09 term at College of the Mainland.

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macroeconomicsexamIIII - Which of the following lists two...

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