Economics

38 Questions  I  By Lillsar95
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Economics Quizzes & Trivia
Monetary Policy

  
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Questions and Answers Excerpt

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