CHAP017 - Chapter 17 The Central Bank Balance Sheet and the...

Chapter 17 The Central Bank Balance Sheet and the Money Supply
Process
Multiple Choice Questions
1. 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 Markets 499

Chapter 17 The Central Bank Balance Sheet and the Money Supply
Process
5. 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 Securities would 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.
500 Cecchetti: Money, Banking, and Financial Markets

Chapter 17 The Central Bank Balance Sheet and the Money Supply
Process