Economics

38 Questions  I  By Lillsar95
Monetary Policy

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