Exam 5: Policy Makers and the Money Supply

Currently, the backing for Federal Reserves notes is primarily in the form of:

The basic function served by requiring adequate bank reserves in the monetary system is to:

Price inflation:

The multiplying capacity of primary deposits is reduced if:

The U.S.Treasury has little power to influence money markets.

Although unemployment represents a loss of potential output, most economists agree that the real costs of unemployment to an economy are minimal.

Who made the following famous statement: "The government's view of the economy could be summed up in a few short phrases: If it moves, tax it.If it keeps moving, regulate it.And if it stops moving, subsidize it."

If required reserves are larger than the total reserves of an institution, the difference is called excess reserves.

One of the reasons open market operations are conducted virtually every business day is to implement changes in the money supply called for by the Federal Open Market Committee.

A primary focus of the Economic Stabilization Act of 2008, which became know as the ___________________________, was to allow the U.S.Treasury purchase up to $700 billion of troubled or toxic assets held by financial institutions.

Under the leadership of ______________, during the 2007-2009 financial crisis, the Treasury was actively involved in trying to help financial institutions on the brink of collapse find help through mergers with financially stronger institutions.

During the 1980s and 1990s, the United States primarily:

U.S.debt management is generally designed to:

Changes in the growth rates for money supply and money velocity affect the growth rate in:

Required reserves are the minimum amount of total reserves that a depository institution must hold.

Primary groups of policy makers that are actively involved in achieving a nation's economic policy objectives include all of the following EXCEPT:

Primary groups of policy makers that are actively involved in achieving a nation's economic policy objectives include all of the following EXCEPT:

Who made the following famous statement: "The government's view of the economy could be summed up in a few short phrases: If it moves, tax it.If it keeps moving, regulate it.And if it stops moving, subsidize it."

The branch of government primarily responsible for the formulation of fiscal policy is the U.S.Senate.

"Crowding out" caused by deficit financing can result in tighter credit conditions and higher interest rates.