Exam 13: Factor Markets: With Emphasis on the Labor Market

Under a free banking arrangement,when people increase the demand for money a process would begin which would end with a(n)_________________ in the supply of money,______________ government intervention.

If the Fed wants to decrease the money supply,it can __________ the required reserve ratio,conduct an open market __________,or __________ the discount rate.

The required reserve ratio is set by the

Which of the following will increase the money supply?

Which of the following statements is false?

Federal Reserve Notes held by the Fed are considered part of the

The lower the required reserve ratio,

If the Fed _____________________,the money supply will ultimately __________.

The larger the simple deposit multiplier,

The Federal Open Market Committee (FOMC)meets on the first Tuesday of each month.

The interest rate that the Fed charges when it lends reserves to banks is called the federal funds rate.

If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio,it follows that banks will now have __________,which they can use to extend loans and create new __________.

When the Fed increases the required reserve ratio,a bank's

The Federal Reserve System is the

If banks are currently holding zero excess reserves and the Fed raises the required reserve ratio,which of the following will happen?

The __________ rate is the interest rate one bank pays another bank for a loan.

A commercial bank can receive a loan from another commercial bank in the

In the United States,paper currency is printed at the

The lower the discount rate relative to the federal funds rate,the more likely a commercial bank will borrow from

Refer to Exhibit 13-2.What word (up or down)should go in the place of blank (1)and blank (2),respectively?