Navigation » List of Schools » Prince George Community College » Economics » Econ 1030 – Principles of Microeconomics » Summer 2021 » Test 6
Below are the questions for the exam with the choices of answers:
Question #1
A Jerome Powell
B Janet Yellen
C Alan Greenspan
D Ben Bernanke
Question #2
A an increase in the federal funds rate and an increase in the money supply
B a decrease in the federal funds rate and a decrease in the money supply
C a decrease in the federal funds rate and an increase in the money supply
D an increase in the federal funds rate and a decrease in the money supply
Question #3
A tax rates
B the imports of the economy
C government spending
D investment spending
Question #4
A selling government securities and raising the discount rate
B buying government securities and lowering the reserve ratio
C buying government securities and lowering the discount rate
D selling government securities and lowering the discount rate
Question #5
A an expansionary monetary policy
B a restrictive monetary policy
C a prime interest rate policy
D a discretionary fiscal policy
Question #6
A banks charge for overnight use of excess reserves held at the Federal Reserve banks
B is charged for government bonds sold in the open market operations of the Federal Reserve
C banks charge for loans to the most creditworthy customers
D the Federal Reserve charges for short-term loans to commercial banks
Question #7
A decreases the discount rate
B increases the amount of excess reserves banks must keep
C increases the discount rate
D changes required reserves to excess reserves
Question #8
A the reserve ratio
B the discount rate
C open-market operations
D interest on reserves
Question #9
A The total demand for money is inversely related to the interest rate.
B The supply of money is directly related to the interest rate.
C Bond prices and the interest rate are directly related.
D A lower interest rate raises the opportunity cost of holding money.
Question #10
A Internal Revenue Service
B Federal Reserve
C Congress of the United States
D U.S. Treasury
Question #11
A provide the means by which checks drawn on the commercial bank and deposited in other commercial banks can be collected
B protect the deposits in the commercial bank against losses
C provide the Fed with a means of controlling the lending ability of the commercial bank
D add to the liquidity of the commercial bank and protect it against a “run” on the bank
Question #12
A issuing receipts for the gold stored with them
B issuing paper money in excess of the amount of gold stored with them
C accepting deposits of gold for safe storage
D using deposited gold to produce products for sale to others
Question #13
A set up the Troubled Asset Relief Program (TARP)
B set up the commercial paper funding facility (CPFF)
C set up the primary dealer credit facility (PDCF)
D set up the money market investor funding facility (MMIFF)
Question #14
A overestimating the expected profits made by oil companies
B overstating the moral hazard problem
C understating the benefits of devaluing the U.S. dollar
D underestimating the risk of losses on mortgage-backed securities
Question #15
A handling the Fed’s collection of checks and adjusting legal reserves among banks
B supervising the operation of banks to make sure they follow regulations and monitoring banks so they do not engage in fraud
C acting as the fiscal agent for the federal government and issuing currency
D setting the Fed’s monetary policy and directing the buying and selling of government securities
Question #16
A commercial banks and thrifts as does the Federal Deposit Insurance Corporation
B the public as do commercial banks and thrifts
C commercial banks and thrifts as those institutions do for the public
D federal government as does the U.S. Treasury
Question #17
A publicly owned but privately controlled
B publicly owned and controlled
C privately owned but publicly controlled
D privately owned and controlled
Question #18
A uses price and wage controls
B buys corporate stock
C employs fiscal policy
D controls the money supply
Question #19
A decrease the conversion of money to gold
B increase the purchasing power of money
C decrease the use of money as a medium of exchange
D increase the use of money as a measure of value
Question #20
A 14.14%
B 16.67%
C 20%
D 25%
Question #21
A debts, or promises to pay
B token money
C legal tender
D assets of the Federal Reserve Banks
Question #22
A the gold bullion that is stored in Fort Knox, Kentucky
B the confidence of the public in the ability of government to pay off the national debt
C the willingness of banks and the government to surrender something of value in exchange for money
D the belief of holders of money that it can be exchanged for desirable goods and services
Question #23
A No, because they provide a short-term loan to cardholders from a financial institution that issued the card.
B No, because the card transactions are not insured by either the Federal Reserve banks or the U.S. Treasury.
C Yes, because their value is included in the calculation of M 1.
D Yes, because their value is included in the calculation of M 2.
Question #24
A fiat money
B token money
C legal tender
D a medium of exchange