Correct Answer
verified
Correct Answer
verified
A) money supply to fall.To reduce the impact of this the Fed could lower the discount rate.
B) money supply to fall.To reduce the impact of this the Fed could raise the discount rate.
C) money supply to rise.To reduce the impact of this the Fed could lower the discount rate.
D) money supply to rise.To reduce the impact of this the Fed could raise the discount rate.
Correct Answer
verified
Correct Answer
verified
A) reserves and the deposits of its customers are both assets.
B) reserves and the deposits of its customers are both liabilities.
C) reserves are assets and the deposits of its customers are liabilities.
D) reserves are liabilities and the deposits of its customers are assets.
Correct Answer
verified
Correct Answer
verified
A) You keep some money hidden in your shoe.
B) You keep track of the value of your assets in terms of currency.
C) You pay for your oil change using currency.
D) None of the above is correct.
Correct Answer
verified
Correct Answer
verified
A) fractional-reserve banking system,since its reserves are less than its deposits.
B) fractional-reserve banking system,since its reserves are less than its loans.
C) 100-percent-reserve banking system,since its assets are equal to its liabilities.
D) 100-percent-reserve banking system if the Fed's reserve requirement is 10 percent;otherwise,it operates in a fractional-reserve banking system.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
The Board of Governors runs the Federal ...View Answer
Correct Answer
verified
View Answer
A) the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank
B) the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000
C) the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank
D) the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000
Correct Answer
verified
Correct Answer
verified
A) make loans to households.
B) influence the money supply.
C) give depositors a safe place to keep their money.
D) buy and sell gold.
Correct Answer
verified
Correct Answer
verified
A) In the special case of 100-percent-reserve banking,the reserve ratio is 1,the money multiplier is 2,and banks create money.
B) In the special case of 100-percent-reserve banking,the reserve ratio is 1,the money multiplier is 1,and banks do not create money.
C) When the reserve ratio is 0.5,then the money multiplier is 1 and banks do not create money.
D) When the reserve ratio is 0.125,then the money multiplier is 8,and each bank loans $8 for every $1 that it accept in deposits.
Correct Answer
verified
Correct Answer
verified
A) M1 but not M2.
B) M1 and M2.
C) M2 but not M1.
D) neither M1 nor M2.
Correct Answer
verified
Correct Answer
verified
A) sells Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
B) sells Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.
C) buys Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
D) buys Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
A) lower the discount rate,raise the reserve requirement
B) lower the discount rate,lower the reserve requirement
C) raise the discount rate,raise the reserve requirement
D) raise the discount rate,lower the reserve requirement
Correct Answer
verified
Correct Answer
verified
A) buy bonds.This buying would increase the money supply.
B) buy bonds.This buying would reduce the money supply.
C) sell bonds.This selling would increase the money supply.
D) sell bonds.This selling would reduce the money supply.
Correct Answer
verified
Correct Answer
verified
A) since the U.S.has a fractional-reserve banking system,the amount of money in the economy depends in part on the behavior of depositors and bankers.
B) the Fed has to get the approval of the U.S.Treasury Department whenever it uses any of its monetary policy tools.
C) while the Fed has the ability to change the money supply by a large amount,it does not have the ability to change it by a small amount.
D) federal legislation in the 1950s stripped the Fed of its power to act as a lender of last resort to banks.
Correct Answer
verified
Correct Answer
verified
A) is a central bank;it is responsible for conducting the nation's monetary policy;and it plays a role in regulating banks.
B) is a central bank;it is responsible for conducing the nation's monetary policy;but it plays no role in regulating banks.
C) is not a central bank;it is responsible for conducing the nation's monetary policy;and it plays a role in regulating banks.
D) is a central bank;it plays a role in regulating banks;but it is not responsible for conducting the nation's monetary policy.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
A) are appointed by the U.S.president,while presidents of the regional Federal Reserve Banks are appointed by those banks' boards of directors.
B) are appointed by the regional Federal Reserve Banks' boards of directors while the presidents of the regional Federal Reserve Banks are appointed by the U.S.president.
C) and the presidents of the regional Federal Reserve Banks are appointed by the U.S.president.
D) and the presidents of the regional Federal Reserve Banks are appointed by the regional Federal Reserve Banks' boards of directors.
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
A) M1 would increase.
B) M1 would decrease.
C) M1 would not change.
D) M1 might rise or fall.
Correct Answer
verified
Correct Answer
verified
Showing 221 - 240 of 366
Related Exams