Econ 3229 Ch 18

23 Questions  I  By Stlepin

  
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1.  18. Which of the following statements is not correct? 
A.
B.
C.
D.
2.  1. The focus for most central banks today is: 
A.
B.
C.
D.
3.  5. Which of the following statements is most correct? 
A.
B.
C.
D.
4.  21. The components of the formula for the Taylor rule includes each of the following, except: 
A.
B.
C.
D.
5.  13. Secondary credit provided by the Fed is designed for: 
A.
B.
C.
D.
6.  6. Which of the following would be categorized as an unconventional monetary policy tool? 
A.
B.
C.
D.
7.  2. Most central banks, including the Fed and the ECB, provide discount loans at a rate: 
A.
B.
C.
D.
8.  9. One reason the target federal funds rate may not equal the actual federal funds rate is because: 
A.
B.
C.
D.
9.  23. Given the following formula for the Taylor rule: Target federal funds rate = 2 + current inflation + ½(inflation gap) +½(output gap) If the current rate of inflation is 5% and the target rate of inflation is 2%, and output is 3% above its potential, the target federal funds rate would be: 
A.
B.
C.
D.
10.  17. From 1979 to 1982, the Fed targeted bank reserves as the monetary policy tool. One side effect of this strategy was: 
A.
B.
C.
D.
11.  12. The types of loans the Fed makes consist of each of the following, except: 
A.
B.
C.
D.
12.  4. The tools of monetary policy available to the Fed include each of the following, except the: 
A.
B.
C.
D.
13.  22. If each of the coefficients in front of the inflation gap and the output gap in the formula for the Taylor rule is 0.5, this implies: 
A.
B.
C.
D.
14.  11. The Fed will make a discount loan to a bank during a crisis: 
A.
B.
C.
D.
15.  15. The Fed is reluctant to change the required reserve rate because: 
A.
B.
C.
D.
16.  16. Which of the following features would characterize a good monetary policy instrument? 
A.
B.
C.
D.
17.  7. If the market federal funds rate were below the target rate, the response from the Fed would likely be to: 
A.
B.
C.
D.
18.  20. Over the last few decades, central bankers have: 
A.
B.
C.
D.
19.  14. Seasonal credit provided by the Fed is not as common as it used to be because: 
A.
B.
C.
D.
20.  3. The ways the Fed can inject reserves into the banking system include: 
A.
B.
C.
D.
21.  8. If the current market federal funds rate equals the target rate and the demand for reserves decreases, the likely response in the federal funds market will be: 
A.
B.
C.
D.
22.  10. Discount lending ties into the Fed's function of: 
A.
B.
C.
D.
23.  19. A good definition for intermediate targets of monetary policy would be: 
A.
B.
C.
D.
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