Economics

38 Questions  I  By Lillsar95
Economics Quizzes & Trivia
Monetary Policy

  
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1.  How is money created in our economy?
A.
B.
C.
D.
2.  Unemployment is at 11% and inflation is at 2%.
A.
B.
C.
3.  GDP has dipped from 3% to 1% in the last year.
A.
B.
C.
4.  The Fed senses that people are not saving enough.
A.
B.
C.
5.  The USA is experiencing both high inflation and high unemployment.
A.
B.
C.
6.  When would the Fed decide to increase the money supply?
A.
B.
C.
7.  Initial Deposit = $100 Reserve Requirement = 10% What is the money multiplier?
A.
B.
C.
D.
8.  Unemployment: 6.2% GDP Growth: -0.3% Inflation: 1.7% What combination of actions by the Fed would achieve all the desired effects? (HINT: easy money = ____)
A.
B.
C.
D.
9.  Unemployment: 6.2% GDP Growth: -0.3% Inflation: 1.7% What is the major problem confronting this economy?
A.
B.
10.  Which of these is not one of the functions of money?
A.
B.
C.
D.
11.  What type of money is used in the USA today?
A.
B.
C.
D.
12.  Initial Deposit = $100 Reserve Requirement = 10% How much money will be created from this initial deposite?
A.
B.
C.
D.
13.  Tight money =
A.
B.
C.
D.
E.
F.
14.  Easy money =
A.
B.
C.
D.
E.
F.
15.  The consumer price index is up and housing starts are at a 15 year high.
A.
B.
C.
16.  When would the Fed decide to increase the interest rates?
A.
B.
C.
D.
17.  Initial Deposit = $100 Reserve Requirement = 10% What is the amount of excess reserves?
A.
B.
C.
D.
18.  What happens to the money supply when the Fed lowers the reserve reqirements?
A.
B.
C.
19.  Unemployment: 6.2% GDP Growth: -0.3% Inflation: 1.7% What effect will your change in the money supply have on interest rates?
A.
B.
C.
20.  Which person is the current federal reserve chairman?
A.
B.
C.
D.
21.  What is the name of the 7 people who are at the top of the federal reserve structure?
A.
B.
C.
D.
22.  What happens to the money supply when the Fed raises the discount rate?
A.
B.
C.
23.  Which of these is not an option the Federal Reserve has to control the economy?
A.
B.
C.
D.
24.  Prices are stable, and the GDP is growing at a 3% rate.
A.
B.
C.
25.  What is Excess Reserve?
A.
B.
26.  Which district bank president is allowed to always serve on the FOMC and never has to rotate?
A.
B.
C.
D.
27.  What is Lag Time?
A.
B.
C.
D.
28.  What happens to the money supply when the Fed sells government securities?
A.
B.
C.
29.  How do we calculate the money multiplier?
A.
B.
C.
D.
30.  Unemployment: 6.2% GDP Growth: -0.3% Inflation: 1.7% What type of monetary policy is needed?
A.
B.
31.  The equation for finding out the total amount of money created is:
A.
B.
C.
32.  What term is used to rescribe the money that the banks must keep from every deposit?
A.
B.
C.
D.
33.  Which portion of the fed actually gets to decide on monetary policy?
A.
B.
C.
D.
34.  Who appoints the fed chairman?
A.
B.
C.
D.
35.  The equation for the excess reserve is:
A.
B.
C.
36.  How long is the term of the fed chairman?
A.
B.
C.
D.
37.  How long do the board of gonvernors serve for?
A.
B.
C.
D.
38.  What is Required Reserve?
A.
B.
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