Economics

38 Questions  I  By Lillsar95
Monetary Policy

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