CHAP015 - Chapter 15 Central Banks In the World Today...

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Chapter 15 Central Banks In the World Today Multiple Choice Questions 1. The central bank in the United States is: A) Bank of America B) The Federal Reserve. C) The U.S. Treasury. D) The Bank of The United States. Answer: B LOD: 1 Page: 376 A-Head: The Basics: How Central Banks Originated and Their Role Today. 2. The number of central banks that exist in the world today is: A) Less than 10. B) Over 250. C) Around 170. D) Over 50 but less than 100. Answer: C LOD: 1 Page: 376 A-Head: The Basics: How Central Banks Originated and Their Role Today. 3. One monopoly that modern central banks have is in: A) Regulating other banks. B) Making loans to banks. C) Issuing U.S. Treasury securities D) Issuing currency. Answer: D LOD: 1 Page: 377 A-Head: The Basics: How Central Banks Originated and Their Role Today. 4. In the U.S. the right to issue currency is held by: A) The Federal Reserve. B) The U.S. Treasury C) The Office of the Comptroller of the Currency. D) The U.S. Mint. Answer: A LOD: 1 Page: 377 A-Head: The Basics: How Central Banks Originated and Their Role Today. Cecchetti: Money, Banking, and Financial Markets 431
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Chapter 15 Central Banks In the World Today 5. Monetary policy in the United States is under the control of: A) The U. S. Treasury. B) The President. C) The Federal Reserve. D) The U.S. Senate. Answer: C LOD: 1 Page: 377 A-Head: The Basics: How Central Banks Originated and Their Role Today. 6. The ability to print money means the central bank can control: A) The availability of money and credit in a country's economy. B) Tax revenue. C) The unemployment rate. D) Government expenditures. Answer: A LOD: 1 Page: 377 A-Head: The Basics: How Central Banks Originated and Their Role Today. 7. Which of the following statements are true? A) Printing money can be a profitable venture for a government. B) Printing money, while necessary, is a losing venture for a government. C) Too much money printed usually leads to higher prices. D) a and c E) b and c Answer: D LOD: 2 Page: 378 A-Head: The Basics: How Central Banks Originated and Their Role Today. 8. Many governments give their central bank control over issuing currency because: A) Printing currency can be profitable for a government so government officials may have a strong incentive to print too much. B) Having large amounts of currency can lead to lower rates of inflation. C) Central banks use the profits from issuing currency to finance their operations. D) The only way to distribute currency to banks is through the central bank. Answer: A LOD: 1 Page: 378 A-Head: The Basics: How Central Banks Originated and Their Role Today. 432 Cecchetti: Money, Banking, and Financial Markets
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Chapter 15 Central Banks In the World Today 9. In its role as the bankers' bank, a central bank performs each of the following, EXCEPT: A) Provides loans during times of financial distress. B) Provides deposit insurance.
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.

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CHAP015 - Chapter 15 Central Banks In the World Today...

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