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