Economics

38 Questions  I  By Lillsar95
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Economics Quizzes & Trivia
Monetary Policy

  
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Questions and Answers

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