Economics

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

  

Question Excerpt

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