Economics

38 Questions  I  By Lillsar95
Monetary Policy

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