Economics

38 Questions  I  By Lillsar95 on March 31, 2011
Monetary Policy

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