Exam III - Blue

Exam III - Blue - Econ 252 Midterm 3 Blue November 15th...

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Econ 252 Midterm 3 Blue November 15 th , 2007 Name ( Please PRINT ): Last Name First Name Student ID #: Place a checkmark next to your section number then record the 4-digit section number on the scantron. 0101 Monday/Wednesday/Frida y 11:30 – 12:20 p.m. 0201 Monday/Wednesday/Frida y 12:30 p.m. – 1:20 p.m. No graphing calculators are allowed. No brimmed hats are allowed. If you are wearing a hat with a brim, turn the brim to the back. All cell phones are to be turned off and put away. You will be in danger of receiving a zero on the exam if your cell phone is on or not put away Do not begin the exam until the instructor tells you to. While waiting, fill out your scantron completely and accurately and read the remaining instructions on this page. If any suspicious behavior is noted, you will be moved and may also receive a zero on the exam. Cheating will not be tolerated. Midterm 3 contains 33 questions on 5 pages. Please be sure that you have 5 pages in your test booklet. If not, please inform the instructor before you begin the exam. Please mark all answers on BOTH the test booklet and the scantron. Once you are finished, please take both your test booklet AND answer sheet to the proper station. 1. Consider the balance sheet below for the FED: Federal Reserve System ASSETS LIABILITIES Miscellaneous…………,,…. .800 Currency held by the Public………. ..400 Securities……………….…9,200 Vault Cash…………………………. .600 Econ 252 Fall 2007 Page 1 of 5 Midterm 3 Blue
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Deposits of Commercial Banks… 9,000 The required reserve ratio for deposits is 5 percent. If commercial banks are currently holding zero excess reserves, the money supply will equal: a) 10,000 b) 110,600 * c) 192,400 d) 200,000 2. The FED can increase the supply of money and credit through: a) Open Market Sales c) Raising the discount rate. b) Raising the required reserve ratio * d) None of the above are correct. 3. If bankers decide they want to increase the level of desired excess reserves, loans and deposits will _______ and the supply of money will ______. * a) decrease; decrease c) decrease; increase b) increase; decrease d) increase; increase 4. Suppose the money supply is growing at a rate of 6 percent per year, and aggregate real output is growing at a rate of 3 percent per year. According to the quantity theory of money, the rate of
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This test prep was uploaded on 04/07/2008 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue.

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Exam III - Blue - Econ 252 Midterm 3 Blue November 15th...

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