Natalie Balzert
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ECON 103 Quiz am Econ 103 Final Exam Practice, erstellt von Natalie Balzert am 12/12/2016.

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Natalie Balzert
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Econ 103 Final Exam Practice

Frage 1 von 60

1

To use monetary policy to lessen the effects of a recession, the Federal Reserve would:

Wähle eine der folgenden:

  • increase the money supply and increase interest rates

  • decrease the money supply and increase interest rates

  • increase the money supply and decrease interest rates

  • decrease the money supply and decrease interest rates

Erklärung

Frage 2 von 60

1

Federal Reserve Notes in the Us are:

Wähle eine der folgenden:

  • commodity money

  • fiat money

  • specie money

  • regulated money

Erklärung

Frage 3 von 60

1

When the USA was founded, the official monetary system was based on:

Wähle eine der folgenden:

  • gold and silver

  • silver only

  • gold only

  • gold, silver, and/or paper as determined by Congress

Erklärung

Frage 4 von 60

1

Prior to the Civil War, US banks could print paper money, the government could not.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 5 von 60

1

Some countries in Central America, South America, and Africa use the US dollar their currency and no longer print their own,

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 6 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

It is called a if a country issues its money backed by dollars or yen.

Erklärung

Frage 7 von 60

1

Which of the following is not one of the functions of money?

Wähle eine der folgenden:

  • medium of exchange

  • insurer of commodities

  • store of value

  • unit of account

Erklärung

Frage 8 von 60

1

When David Hume said that money was the oil of trade, he meant which function of money?

Wähle eine der folgenden:

  • Medium of exchange

  • Insurer of commodities

  • Store of valie

  • Unite of Account

Erklärung

Frage 9 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

An economic system without money is a system.

Erklärung

Frage 10 von 60

1

In the book the Wonderful Wizard of Oz, the author supports:

Wähle eine der folgenden:

  • bimetallism

  • the gold standard

  • fiat money

  • reserve currencies

Erklärung

Frage 11 von 60

1

Which of the following is false about the Wonderful Wizard of Oz?

Wähle eine der folgenden:

  • The yellow brick road is the gold standard

  • The scarecrow represents farmers

  • Dorothy's slippers are made of silver in the original story

  • The tin woodsman represents Wall Street

Erklärung

Frage 12 von 60

1

The Wonderful Wizard of Oz is about the presidential election of 1896.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 13 von 60

1

In the Wonderful Wizard of Oz the wizard is the president of the US.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 14 von 60

1

In a fractional reserve banking system, banks must keep:

Wähle eine der folgenden:

  • a % of their of their loans on reserve in the bank

  • a % of their deposits on reserve in the bank

  • a set dollar amount on reserve in the bank, based on their size

  • a percentage of their average daily transactions on reserve in the bank

Erklärung

Frage 15 von 60

1

The Federal Reserve was founded in 1913. It is the first central bank the US has ever had, while most of the central banks in Europe are hundreds of years old.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 16 von 60

1

The Fed is divided into Districts because:

Wähle eine der folgenden:

  • it is more efficient to issue currency that way due to the size of the country

  • separate districts can better adapt to local economic conditions

  • too many states wanted the Fed located there, so having 12 was a political compromise

  • Katniss Everdeen decided

Erklärung

Frage 17 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

In today's financial system, the value of our money depends only on our in it, according to your professor.

Erklärung

Frage 18 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The Fed decreases the money supply by bonds.

Erklärung

Frage 19 von 60

1

The Federal Reserve is intended to be independent of the President and Congress.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 20 von 60

1

When the Fed increases the money supply, interest rates should:

Wähle eine der folgenden:

  • fall

  • rise

  • remain inchanged

Erklärung

Frage 21 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The rate is what the Fed charges banks when they borrow from it.

Erklärung

Frage 22 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The rate is what US banks are charged for overnight loans.

Erklärung

Frage 23 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The is the European version of the previous question.

Erklärung

Frage 24 von 60

1

Most of the money in the world is:

Wähle eine der folgenden:

  • cash printed by the government

  • created by banks when they make loans

  • created through printing bonds

  • created by banks taking deposits

Erklärung

Frage 25 von 60

1

A credit default swap is actually an insurance policy on a financial asset.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 26 von 60

1

M1 is mainly:

Wähle eine der folgenden:

  • cash and coins

  • currency and checking accounts

  • currency, checking accounts, and small savings and time deposits

  • a freeway in London

Erklärung

Frage 27 von 60

1

If Bill's bank is the only bank, it can legally make a loan of $50000. That is, it's accounts will still balance legally after the loan is made.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 28 von 60

1

When the interest rate rises, investment should do what?

Wähle eine der folgenden:

  • rise

  • fall

  • be unchanged

Erklärung

Frage 29 von 60

1

The modern theory of economic growth is based on _____ as the key to growth.

Wähle eine der folgenden:

  • savings

  • ideas and innovations

  • infrastructure investment

  • banking reform

Erklärung

Frage 30 von 60

1

The size of a country's _____ relative to its population tells us how rich it is.

Wähle eine der folgenden:

  • bank reserves

  • capital stock

  • financial markets

  • exports

Erklärung

Frage 31 von 60

1

According to the United Nations, what is the biggest obstacle to economic development for poor nations in the world today?

Wähle eine der folgenden:

  • too much debt

  • treatment of women

  • child labor

  • poor transportation systems

Erklärung

Frage 32 von 60

1

Despite the theories, the quantity of natural resources a country has turns out to be the most important factor to its economic growth in the real world.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 33 von 60

1

When the government uses its taxing and spending powers to affect the economy, it is called:

Wähle eine der folgenden:

  • monetary policy

  • congressional policy

  • financial policy

  • fiscal policy

Erklärung

Frage 34 von 60

1

Open Market operations are

Wähle eine der folgenden:

  • the buying and selling of government bonds by the Federal Reserve

  • the means by which the Federal Reserve acts as the government's banker

  • the buying and selling of Federal Reserve Notes in the open market

  • the buying and selling of government bonds by the Treasury

Erklärung

Frage 35 von 60

1

When the government of Japan targeted its automobile companies as a way to make the economy grow, this was called _____ policy.

Wähle eine der folgenden:

  • fiscal

  • regional

  • industrial

  • referntial

Erklärung

Frage 36 von 60

1

In the current economic crisis, a Classical economist would have done what with the failing banks and insurance companies?

Wähle eine der folgenden:

  • let them go bankrupt, regardless of effect on anything else

  • let them go bankrupt, with the Fed protecting other financial institutions affected by it

  • forced another financial institution to buy them, with help from the Fed

  • exactly what the Fed did, buy billions in their stock to increase their reserves

Erklärung

Frage 37 von 60

1

Keynesians believe that the best way to end a recession is:

Wähle eine der folgenden:

  • increase the money supply and lower interest rates

  • increase government spending and make tax cuts

  • raise interest rates and cut taxes

  • do nothing

Erklärung

Frage 38 von 60

1

When lowering interest rates dows not affect the economy, economists say we are in a(n):

Wähle eine der folgenden:

  • functional deficit

  • liquidity trap

  • crowding out

  • transitional lag

Erklärung

Frage 39 von 60

1

Correctly measured the US national debt:

Wähle eine der folgenden:

  • is larger than it has ever been

  • has increased under every president since 1900, except Clinton

  • is smaller than Japan's

  • b and c only

  • a,b, and c are all correct

Erklärung

Frage 40 von 60

1

The last US president who did not have a budget deficit was:

Wähle eine der folgenden:

  • Reagan

  • Kennedy

  • Jackson

  • Clinton

Erklärung

Frage 41 von 60

1

Almost all money in the world today is _____ money

Wähle eine der folgenden:

  • commodity

  • fiat

  • industrial

  • contractual

Erklärung

Frage 42 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

An economic system without money is a(n) system.

Erklärung

Frage 43 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The central bank increases the money supply by bonds.

Erklärung

Frage 44 von 60

1

The Fed is divided into 12 districts which are supposed to:

Wähle eine der folgenden:

  • simplify the Fed's accounting

  • each contain 1/12 of the population, creating a monetary "congress"

  • represent the unique economic interests of different parts of the country

  • all members of congress to appoint those who their local economy

Erklärung

Frage 45 von 60

1

Most of the money is the world is:

Wähle eine der folgenden:

  • cash printed by the government

  • created by banks when they make loans

  • created through printing bonds

  • created by banks taking deposits

Erklärung

Frage 46 von 60

1

The entity intended to be the central bank for the world is the:

Wähle eine der folgenden:

  • ECB

  • IMF

  • World Bank

  • Wynn Resorts

Erklärung

Frage 47 von 60

1

When the entity in the previous question make a loan to a country, it requires a(n) _____ program in exchange

Wähle eine der folgenden:

  • re-invigoration

  • austerity

  • spending

Erklärung

Frage 48 von 60

1

The changes made to US currency have been made to:

Wähle eine der folgenden:

  • lengthen the time the money is used in circulation

  • prevent couterfeiting

  • lower the costs of printing

  • b and c

Erklärung

Frage 49 von 60

1

Fülle die Lücken, um den Text zu vervollständigen.

M2 consists of the , , and .

Erklärung

Frage 50 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The Act separated banking and stock brokers. It has since been repealed.

Erklärung

Frage 51 von 60

1

Congress in 1999 passed a law which prohibited the government from creating rules that regulated mortgage backed securities.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 52 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

When lowering interest rates does not affect the economy, economists say that we are in a(n) .

Erklärung

Frage 53 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

It is called when the government's borrowing to pay for something like the stimulus package makes interest rates go up, and lessons private borrowing.

Erklärung

Frage 54 von 60

1

Data tell us that changing taxes has the strongest effect on the economy when times are good, and less effect as times go bad.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 55 von 60

1

Banks in the US in the 1800s were generally allowed to print their own money.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung

Frage 56 von 60

1

Fülle die Lücke, um den Text zu vervollständigen

The approval that a bank must have to be allowed to operate is called a(n) .

Erklärung

Frage 57 von 60

1

Bill's Bank has $5,000 in cash, $10,000 in loans, and $40,000 in deposits. Its actual reserves are:

Wähle eine der folgenden:

  • $10,000

  • $4,000

  • $40,000

  • $5,000

Erklärung

Frage 58 von 60

1

Bill's Bank has $5,000 in cash, $10,000 in loans, and $40,000 in deposits. It requires reserves, assuming 10% reserve requirement, are:

Wähle eine der folgenden:

  • $4,000

  • $1,000

  • $10,000

Erklärung

Frage 59 von 60

1

Bill's Bank has $5,000 in cash, $10,000 in loans, and $40,000 in deposits. Its excess reserves, assuming 10% reserve requirement, are:

Wähle eine der folgenden:

  • $0

  • $2,000

  • $1,000

Erklärung

Frage 60 von 60

1

Bill's Bank has $5,000 in cash, $10,000 in loans, and $40,000 in deposits. It can make a $5,000 loan and remain legal, assuming a 10% reserve requirement.

Wähle eins der folgenden:

  • WAHR
  • FALSCH

Erklärung