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Economics

38 Questions  I  By Lillsar95
Economics
Monetary Policy

  
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Question Excerpt

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