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Quiz von Natalie Balzert, aktualisiert more than 1 year ago
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Erstellt von Natalie Balzert
vor mehr als 7 Jahre
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Frage 1
Frage
To use monetary policy to lessen the effects of a recession, the Federal Reserve would:
Antworten
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increase the money supply and increase interest rates
-
decrease the money supply and increase interest rates
-
increase the money supply and decrease interest rates
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decrease the money supply and decrease interest rates
Frage 2
Frage
Federal Reserve Notes in the Us are:
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commodity money
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fiat money
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specie money
-
regulated money
Frage 3
Frage
When the USA was founded, the official monetary system was based on:
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gold and silver
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silver only
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gold only
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gold, silver, and/or paper as determined by Congress
Frage 4
Frage
Prior to the Civil War, US banks could print paper money, the government could not.
Antworten
- True
- False
Frage 5
Frage
Some countries in Central America, South America, and Africa use the US dollar their currency and no longer print their own,
Antworten
- True
- False
Frage 6
Frage
It is called a [blank_start]Currency Board[blank_end] if a country issues its money backed by dollars or yen.
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Currency Board
Frage 7
Frage
Which of the following is not one of the functions of money?
Antworten
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medium of exchange
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insurer of commodities
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store of value
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unit of account
Frage 8
Frage
When David Hume said that money was the oil of trade, he meant which function of money?
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Medium of exchange
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Insurer of commodities
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Store of valie
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Unite of Account
Frage 9
Frage
An economic system without money is a [blank_start]Barter[blank_end] system.
Antworten
-
Barter
Frage 10
Frage
In the book the Wonderful Wizard of Oz, the author supports:
Antworten
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bimetallism
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the gold standard
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fiat money
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reserve currencies
Frage 11
Frage
Which of the following is false about the Wonderful Wizard of Oz?
Antworten
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The yellow brick road is the gold standard
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The scarecrow represents farmers
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Dorothy's slippers are made of silver in the original story
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The tin woodsman represents Wall Street
Frage 12
Frage
The Wonderful Wizard of Oz is about the presidential election of 1896.
Antworten
- True
- False
Frage 13
Frage
In the Wonderful Wizard of Oz the wizard is the president of the US.
Antworten
- True
- False
Frage 14
Frage
In a fractional reserve banking system, banks must keep:
Antworten
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a % of their of their loans on reserve in the bank
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a % of their deposits on reserve in the bank
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a set dollar amount on reserve in the bank, based on their size
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a percentage of their average daily transactions on reserve in the bank
Frage 15
Frage
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.
Antworten
- True
- False
Frage 16
Frage
The Fed is divided into Districts because:
Antworten
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it is more efficient to issue currency that way due to the size of the country
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separate districts can better adapt to local economic conditions
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too many states wanted the Fed located there, so having 12 was a political compromise
-
Katniss Everdeen decided
Frage 17
Frage
In today's financial system, the value of our money depends only on our [blank_start]faith[blank_end] in it, according to your professor.
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faith
Frage 18
Frage
The Fed decreases the money supply by [blank_start]selling[blank_end] bonds.
Antworten
-
selling
Frage 19
Frage
The Federal Reserve is intended to be independent of the President and Congress.
Antworten
- True
- False
Frage 20
Frage
When the Fed increases the money supply, interest rates should:
Antworten
-
fall
-
rise
-
remain inchanged
Frage 21
Frage
The [blank_start]discount[blank_end] rate is what the Fed charges banks when they borrow from it.
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discount
Frage 22
Frage
The [blank_start]Federal Fund[blank_end] rate is what US banks are charged for overnight loans.
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Federal Funds
Frage 23
Frage
The [blank_start]LIBOR[blank_end] is the European version of the previous question.
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-
LIBOR
Frage 24
Frage
Most of the money in the world is:
Antworten
-
cash printed by the government
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created by banks when they make loans
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created through printing bonds
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created by banks taking deposits
Frage 25
Frage
A credit default swap is actually an insurance policy on a financial asset.
Antworten
- True
- False
Frage 26
Frage
M1 is mainly:
Antworten
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cash and coins
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currency and checking accounts
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currency, checking accounts, and small savings and time deposits
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a freeway in London
Frage 27
Frage
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.
Antworten
- True
- False
Frage 28
Frage
When the interest rate rises, investment should do what?
Antworten
-
rise
-
fall
-
be unchanged
Frage 29
Frage
The modern theory of economic growth is based on _____ as the key to growth.
Antworten
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savings
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ideas and innovations
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infrastructure investment
-
banking reform
Frage 30
Frage
The size of a country's _____ relative to its population tells us how rich it is.
Antworten
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bank reserves
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capital stock
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financial markets
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exports
Frage 31
Frage
According to the United Nations, what is the biggest obstacle to economic development for poor nations in the world today?
Antworten
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too much debt
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treatment of women
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child labor
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poor transportation systems
Frage 32
Frage
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.
Antworten
- True
- False
Frage 33
Frage
When the government uses its taxing and spending powers to affect the economy, it is called:
Antworten
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monetary policy
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congressional policy
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financial policy
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fiscal policy
Frage 34
Frage
Open Market operations are
Antworten
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the buying and selling of government bonds by the Federal Reserve
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the means by which the Federal Reserve acts as the government's banker
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the buying and selling of Federal Reserve Notes in the open market
-
the buying and selling of government bonds by the Treasury
Frage 35
Frage
When the government of Japan targeted its automobile companies as a way to make the economy grow, this was called _____ policy.
Antworten
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fiscal
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regional
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industrial
-
referntial
Frage 36
Frage
In the current economic crisis, a Classical economist would have done what with the failing banks and insurance companies?
Antworten
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let them go bankrupt, regardless of effect on anything else
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let them go bankrupt, with the Fed protecting other financial institutions affected by it
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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
Frage 37
Frage
Keynesians believe that the best way to end a recession is:
Antworten
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increase the money supply and lower interest rates
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increase government spending and make tax cuts
-
raise interest rates and cut taxes
-
do nothing
Frage 38
Frage
When lowering interest rates dows not affect the economy, economists say we are in a(n):
Antworten
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functional deficit
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liquidity trap
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crowding out
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transitional lag
Frage 39
Frage
Correctly measured the US national debt:
Antworten
-
is larger than it has ever been
-
has increased under every president since 1900, except Clinton
-
is smaller than Japan's
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b and c only
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a,b, and c are all correct
Frage 40
Frage
The last US president who did not have a budget deficit was:
Antworten
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Reagan
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Kennedy
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Jackson
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Clinton
Frage 41
Frage
Almost all money in the world today is _____ money
Antworten
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commodity
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fiat
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industrial
-
contractual
Frage 42
Frage
An economic system without money is a(n) [blank_start]Barter[blank_end] system.
Antworten
-
Barter
Frage 43
Frage
The central bank increases the money supply by [blank_start]buying[blank_end] bonds.
Antworten
-
buying
Frage 44
Frage
The Fed is divided into 12 districts which are supposed to:
Antworten
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simplify the Fed's accounting
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each contain 1/12 of the population, creating a monetary "congress"
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represent the unique economic interests of different parts of the country
-
all members of congress to appoint those who their local economy
Frage 45
Frage
Most of the money is the world is:
Antworten
-
cash printed by the government
-
created by banks when they make loans
-
created through printing bonds
-
created by banks taking deposits
Frage 46
Frage
The entity intended to be the central bank for the world is the:
Antworten
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ECB
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IMF
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World Bank
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Wynn Resorts
Frage 47
Frage
When the entity in the previous question make a loan to a country, it requires a(n) _____ program in exchange
Antworten
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re-invigoration
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austerity
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spending
Frage 48
Frage
The changes made to US currency have been made to:
Antworten
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lengthen the time the money is used in circulation
-
prevent couterfeiting
-
lower the costs of printing
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b and c
Frage 49
Frage
M2 consists of the [blank_start]sum of M1[blank_end], [blank_start]saving accounts[blank_end], and [blank_start]small time deposits[blank_end].
Antworten
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sum of M1
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savings account
-
small time deposits
Frage 50
Frage
The [blank_start]Glass-Steagal[blank_end] Act separated banking and stock brokers. It has since been repealed.
Antworten
-
Glass-Steagal
Frage 51
Frage
Congress in 1999 passed a law which prohibited the government from creating rules that regulated mortgage backed securities.
Antworten
- True
- False
Frage 52
Frage
When lowering interest rates does not affect the economy, economists say that we are in a(n) [blank_start]liquidity trap[blank_end].
Antworten
-
liquidity trap
Frage 53
Frage
It is called [blank_start]crowding out[blank_end] when the government's borrowing to pay for something like the stimulus package makes interest rates go up, and lessons private borrowing.
Antworten
-
crowding out
Frage 54
Frage
Data tell us that changing taxes has the strongest effect on the economy when times are good, and less effect as times go bad.
Antworten
- True
- False
Frage 55
Frage
Banks in the US in the 1800s were generally allowed to print their own money.
Antworten
- True
- False
Frage 56
Frage
The approval that a bank must have to be allowed to operate is called a(n) [blank_start]charter[blank_end].
Antworten
-
charter
Frage 57
Frage
Bill's Bank has $5,000 in cash, $10,000 in loans, and $40,000 in deposits. Its actual reserves are:
Antworten
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$10,000
-
$4,000
-
$40,000
-
$5,000
Frage 58
Frage
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:
Antworten
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$4,000
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$1,000
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$10,000
Frage 59
Frage
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:
Antworten
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$0
-
$2,000
-
$1,000
Frage 60
Frage
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.
Antworten
- True
- False
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