Chapter 17 The Central Bank Balance Sheet and the Money Supply ProcessMultiple Choice Questions1.The collapse of the Thai currency, the baht, was partially due to: A)Inaction by the Federal Reserve. B)The European Central Bank. C)Information provided by the central bank of Thailand. D)Information not provided by the central bank of Thailand. Answer: D LOD: 1 Page: 427 A-Head: The Central Bank's Balance Sheet.2.Each of the following items would appear as assets on the central bank's balance sheet, EXCEPT: LOD: 1 Page: 428 A-Head: The Central Bank's Balance Sheet.3.A central Bank's balance sheet will categorize the following as liabilities: LOD: 1 Page: 428 A-Head: The Central Bank's Balance Sheet.4.A central bank's balance sheet would categorize each of the following as liabilities, EXCEPT: LOD: 1 Page: 428 A-Head: The Central Bank's Balance Sheet.Cecchetti: Money, Banking, and Financial Markets499
Chapter 17 The Central Bank Balance Sheet and the Money Supply Process5.The main asset held by a central bank in its role as the Banker's Bank is: A)Foreign Exchange Reserves B) Currency C) Loans D) Securities Answer: C LOD: 1 Page: 428 A-Head: The Central Bank's Balance Sheet.6.A liability of the central bank in functioning as the Banker' Bank is: LOD: 1 Page: 428 A-Head: The Central Bank's Balance Sheet.7.For the Federal Reserve's balance sheet, the asset listed Securitieswould include: LOD: 2 Page: 428 A-Head: The Central Bank's Balance Sheet.8.If the Federal Reserve is to be independent, the quantity of securities it purchases is determined by: LOD: 2 Page: 428 A-Head: The Central Bank's Balance Sheet.500Cecchetti: Money, Banking, and Financial Markets
Chapter 17 The Central Bank Balance Sheet and the Money Supply Process
