Quiz%2012 - Econ 210- Quiz 12 _ Name: 1. Which of the...

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Econ 210- Quiz 12 Name: ___________________________ 1. Which of the following is the least liquid asset? a. Currency b. A Sports car c. A Traveler’s check d. A money market deposit 2. Which measure of money supply only includes money used directly as a medium of exchange? a. M1 b. M2 c. M3 d. A and B 3. Which of the following statement is true ? a. Monetary policy refers to actions taken by the central bank to control growth of money demand. b. Private depository institutions are required to hold 100% of customer deposits in reserves. c. A central bank purchase of securities in the open market raises the money supply. d. The central bank may lower the required reserve rate when pursuing a contractionary monetary policy. 4. The sum of bank reserves and currency held by the non-bank public make up: a. the monetary base b. low powered money c. excess reserves d. A and B 5. Ceintro bank has deposits in the amount of $500,000. If the required reserve ratio is 10%
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This note was uploaded on 02/26/2012 for the course ECON 210 taught by Professor Staff during the Fall '08 term at Purdue University-West Lafayette.

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Quiz%2012 - Econ 210- Quiz 12 _ Name: 1. Which of the...

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