Economics

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

  

Question Excerpt

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