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