Economics

38 Questions  I  By Lillsar95
Monetary Policy

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