Exam 8: Money, The Price Level, and Inflation

In a world with no money,costs are expressed in terms of other goods. If one video game costs two hamburgers,and a hamburger costs three sodas,how many sodas would it take to buy a video game?

The most powerful individual in the Federal Reserve is the Chairman of the Board of Governors.

When banks use specialized resources to monitor borrowers,they are

Briefly describe the Federal Reserve System,how it is governed,and its roles in the economy.

Suppose the money market has an equilibrium interest rate of 10 percent.If the actual interest is 8 percent,which of the following occurs to bring the money market back to equilibrium?

If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent,what is the amount of new loans the bank can make?

What is the money multiplier and what affects its size?

Which of the following is a liability on the balance sheet of the Federal Reserve System?

A bank's required reserves are calculated by multiplying ________.

The quantity theory of money asserts that inflation is the result of growth in

Which of the following is considered a depository institution? I. the U.S.Treasury II. a commercial bank like Citibank III. a credit union for federal government employees

Assets Liabilities Reserves \ 30 Deposits Loans \ 1,000 \ 970 Total Total \ 1,000 \ 1,000 -The above table gives the initial balance sheet for Mega Bank.Barney comes into the bank and deposits $50 of currency into his checking account.The desired reserve ratio is 3 percent.After Barney's deposit,but before any other actions occur,MegaBank will have excess reserves of

What is the equation of exchange? Suppose that real GDP and velocity are constant.In this case,what effect will an increase in the quantity of money have?

Which of the following is money?

In the United States,the central bank is the ________.

When the quantity of money demanded is greater than the quantity of money supplied,people ________ bonds and the interest rate ________.

Suppose prices are quoted in dollars and transactions are conducted in pesos.The dollar serves as a

Are checks and credit cards money? Explain why or why not.

The Fed buys $100 million of government securities from Bank A.What is the effect on the Federal Reserve's balance sheet?

The Federal Reserve has ________ regional Federal Reserve banks and ________ members of the Board of Governors.