3627398
Frage 1
Frage
Only the Federal Reserve can create money.
Antworten
- True
- False
Frage 2
Frage
If the Fed increases the supply of money, unemployment increases also.
Antworten
- True
- False
Frage 3
Frage
The Fed can increase the money supply by buying securities.
Antworten
- True
- False
Frage 4
Frage
The main reason the Fed changes the discount rate is to signal investors of future short-term interest rates.
Antworten
- True
- False
Frage 5
Frage
National Banks have the option to be members of the Federal Reserve System.
Antworten
- True
- False
Frage 6
Frage
Money is defined as currency and coins only.
Antworten
- True
- False
Frage 7
Frage
Even though the Fed is independent of Congress, it still hesitates to make politically unpopular monetary policy decisions.
Antworten
- True
- False
Frage 8
Frage
If the Fed were to sell securities, total reserves in the banking system would decrease.
Antworten
- True
- False
Frage 9
Frage
When the Fed decreases the supply of money, the supple curve shifts left.
Antworten
- True
- False
Frage 10
Frage
The President of the United States and the Senate choose the members of the Board of Governors.
Antworten
- True
- False
Frage 11
Frage
Of its three functions, it is as a unit of account that distinguishes money from other assets.
Antworten
- True
- False
Frage 12
Frage
Currency held by depository institutions (banks) is added to currency circulation in the hands of the public to get total currency in circulation.
Antworten
- True
- False
Frage 13
Frage
A sale of government bonds by the Fed, all else the same, increase the monetary base.
Antworten
- True
- False
Frage 14
Frage
Monetary policy is set by the Board of Governors.
Antworten
- True
- False
Frage 15
Frage
If the Fed targets a monetary aggregate it is likely to lose control over the interest rate because of fluctuations in the money demand function.
Antworten
- True
- False
Frage 16
Frage
Which of these terms does not refer to the same bank?
Antworten
-
the Fed
-
central bank
-
member bank
-
The Federal Reserve Bank
Frage 17
Frage
__________ is the governing body of the Federal Reserve System.
Antworten
-
The President
-
Congress
-
The Senate
-
The Board of Governors
Frage 18
Frage
When interest rates have increase, __________?
Antworten
-
investments decrease
-
unemployment decreases
-
economic activity increases
-
firms borrow more money
Frage 19
Frage
__________ influences the economy through changes in interest rates.
Antworten
-
The discount rate
-
Monetary policy
-
The money multiplier
-
Congress
Frage 20
Frage
What is the most important tool for controlling the money supply?
Antworten
-
discount rate
-
open market operations
-
reserve requirements
-
investment spending
Frage 21
Frage
How many years is the Board of Governors appointed?
Antworten
-
2
-
12
-
14
-
life
Frage 22
Frage
Who demands the loanable funds?
Antworten
-
individuals
-
businesses
-
government
-
all the above
Frage 23
Frage
If the fed buys $350 million in government securities and the reserve requirement is 5%, what is the change that would result in the money supply?
Antworten
-
$7,000 million
-
$700 billion
-
$1,750 billion
-
$175 billion
Frage 24
Frage
If there is an increase in business development, the demand curve will __________?
Antworten
-
shift left
-
shift right
-
not be effected
-
increase up
Frage 25
Frage
Which of the following is not one of the four primary responsibilities of the Fed?
Antworten
-
Supervising and regulating commercial banks
-
Maximizing the profit to satisfy the investors
-
Holding the US treasury checking account
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Implementing monetary policy
Frage 26
Frage
The Fed lacks complete control over the money supply because it cannot perfectly predict..
Antworten
-
the amount of discount borrowing by banks
-
shifts from deposit to currency
-
the level of excess reserves held by banks
-
all of the above
Frage 27
Frage
For a given level of monetary base, a decrease in the required reserve ratio on checkable deposits will mean..
Antworten
-
decrease in the money supply
-
an increase in the money supply
-
a decrease in checkable deposits
-
an increase in discount borrowing
Frage 28
Frage
The money multiplier is..
Antworten
-
negatively related to high-powered money
-
negatively related to the required reserve ratio
-
positively related to holdings of excess reserve
-
positively related to the discount borrowing from the Fed
Frage 29
Frage
According to the Loanable Funds Theory of Interest Rates, which of the following statement is true?
Antworten
-
an increase in interest rates results in greater savings
-
there is little relationship between the level of interest rates and the amount of new money created
-
the demand for loanable funds is a function of the demand for funds by individuals, business, and government
-
all of the above are true
Frage 30
Frage
Explain what happens when the money supply increases.
Antworten
-
When the money supply increases, interest rates tend to fall. This causes firms to borrow more money to invest in new equipment and buildings.
-
Since industries are expanding, there would be an increase in jobs, which in turn would increase consumer spending.
-
All of the above.
Frage 31
Frage
What will happen to the supply curve if the Fed sells securities?
Antworten
-
Interest rates will rise.
-
This would cause the supply curve to shift left because there is a decrease in the amount of loanable funds.
-
All of the above.
Frage 32
Frage
The Federal Reserve can influence __________.
Antworten
-
the money supply
-
interest rates
-
politicians
-
and and b
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