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Economics

38 Questions  I  By Lillsar95
Economics
Monetary Policy

  
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Question Excerpt

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