Earned 1010 Correct Answers False 34 The reason that the existence of money

Earned 1010 correct answers false 34 the reason that

This preview shows page 15 - 19 out of 21 pages.

Points Earned: 1.0/1.0 Correct Answer(s):False 34. The reason that the existence of money increases efficiency in the economy is that it allows society to avoid the double coincidence of wants and therefore, allows people to specialize in what they do best. Table for Individual Question Feedback Points Earned: 1.0/1.0 35. Assuming that the nominal return on money is equal to zero, the real return to holding money is the inflation rate. Table for Individual Question Feedback Points Earned: 1.0/1.0
36. The largest component of household sector wealth is wealth in the stock market. Table for Individual Question Feedback Points Earned: 1.0/1.0 37. M2 is more liquid than M1 since M2 includes traveler's checks where M1 does not. A) True B) False Correct Answer(s):False Table for Individual Question Feedback Points Earned: 1.0/1.0 38. The FOMC meets every month unless conditions warrant more frequent meetings. Table for Individual Question Feedback Points Earned: 1.0/1.0 39. The Philadelphia Federal Reserve Bank is responsible for monitoring economic activity in their district which includes the economic activity in State College, PA. Table for Individual Question Feedback Points Earned: 1.0/1.0 40.
According to the lecture discussing the October 2012 FOMC statement, the Fed plans on buying $85 billion per month in longer term securities in hopes of lowering long term interest rates. Table for Individual Question Feedback Points Earned: 1.0/1.0 41. According to the lecture discussing the October 2012 FOMC statement, they plan on keeping their target for the federal funds rate in the range of 0 - 0.25% at least through mid 2015. A) True B) False Correct Answer(s):True Table for Individual Question Feedback Points Earned: 1.0/1.0 42. All regional bank presidents of the Federal Reserve system vote at all FOMC meetings. Table for Individual Question Feedback Points Earned: 1.0/1.0 43. Open market operations influence reserve supply. For example, an open market sale will increase reserve supply. Table for Individual Question Feedback Points Earned: 1.0/1.0 44.
According to our discussion on the FOMC statement from August 2007, the Fed was worried about inflation getting too high. Table for Individual Question Feedback

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture