Question 1

What does the text mean by the question, "Where Is All the Currency?" How does it answer the question?

Accepted Answer

The amount of currency per person is nea

Question 2

In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases.

Accepted Answer

A) True 
 B)False

Question 3

Monetary policy is determined by a committee whose voting members include all the presidents of the regional Federal Reserve Banks.

Accepted Answer

A) True 
 B)False

Question 4

To increase the money supply, the Fed could

Accepted Answer

A)  sell government bonds. 
B)  decrease the discount rate. 
C)  increase the reserve requirement. 
D)  None of the above is correct. 
A)  sell government bonds. 
B)  decrease the discount rate. 
C)  increase the reserve requirement. 
D)  None of the above is correct.

Question 5

Which of the following is not a tool of monetary policy?

Accepted Answer

A)  open market operations 
B)  reserve requirements 
C)  changing the discount rate 
D)  increasing the government budget deficit 
A)  open market operations 
B)  reserve requirements 
C)  changing the discount rate 
D)  increasing the government budget deficit

Question 6

In an economy that relies on barter, trade requires a double-coincidence of wants.

Accepted Answer

A) True 
 B)False

Question 7

When banks decide to increase their reserves, the money supply will holding all else constant).

Accepted Answer

The answer of When banks decide to increase their reserves,...

Question 8

Which of the following is both a store of value and regularly used as a medium of exchange?

Accepted Answer

A)  cash and stocks 
B)  cash but not stocks 
C)  stocks but not cash 
D)  neither cash nor stocks 
A)  cash and stocks 
B)  cash but not stocks 
C)  stocks but not cash 
D)  neither cash nor stocks

Question 9

Which of the following can the Fed do to change the money supply?

Accepted Answer

A)  change reserves or change the reserve ratio 
B)  change reserves but not change the reserve ratio 
C)  change the reserve ratio but not change the reserve ratio 
D)  neither change reserves nor change the reserve ratio 
A)  change reserves or change the reserve ratio 
B)  change reserves but not change the reserve ratio 
C)  change the reserve ratio but not change the reserve ratio 
D)  neither change reserves nor change the reserve ratio

Question 10

Money is

Accepted Answer

A)  the most liquid asset and a perfect store of value. 
B)  the most liquid asset but an imperfect store of value. 
C)  not the most liquid asset but a perfect store of value. 
D)  neither the most liquid asset and nor a perfect store of value. 
A)  the most liquid asset and a perfect store of value. 
B)  the most liquid asset but an imperfect store of value. 
C)  not the most liquid asset but a perfect store of value. 
D)  neither the most liquid asset and nor a perfect store of value.

Question 11

An open-market sale

Accepted Answer

A)  increases the number of dollars and the number of bonds in the hands of the public. 
B)  increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. 
C)  decreases the number of dollars and the number of bonds in the hands of the public. 
D)  decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public. 
A)  increases the number of dollars and the number of bonds in the hands of the public. 
B)  increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. 
C)  decreases the number of dollars and the number of bonds in the hands of the public. 
D)  decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.

Question 12

The New York Federal Reserve Bank

Accepted Answer

A)  president always gets to vote at the FOMC meetings. 
B)  conducts open market transactions. 
C)  is one of 12 regional Federal Reserve Banks. 
D)  All of the above are correct. 
A)  president always gets to vote at the FOMC meetings. 
B)  conducts open market transactions. 
C)  is one of 12 regional Federal Reserve Banks. 
D)  All of the above are correct.

Question 13

Are credit cards and debit cards money? What's the difference between credit and debit cards?

Accepted Answer

Neither credit cards nor debit cards are

Question 14

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?

Accepted Answer

A)  $5,000 billion 
B)  $4,937.5 billion 
C)  $5,062.5 billion 
D)  $4,995 billion 
A)  $5,000 billion 
B)  $4,937.5 billion 
C)  $5,062.5 billion 
D)  $4,995 billion

Question 15

Roundabout trade decreases production.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is included in M1 and M2?

Accepted Answer

A)  traveler's checks 
B)  savings deposits 
C)  money market mutual funds 
D)  small time deposits 
A)  traveler's checks 
B)  savings deposits 
C)  money market mutual funds 
D)  small time deposits

Question 17

Members of the Board of Governors are appointed by the president of the U.S. and confirmed by the U.S. Senate.

Accepted Answer

A) True 
 B)False

Question 18

In a system of 100-percent-reserve banking, the purpose of a bank is to

Accepted Answer

A)  make loans to households. 
B)  influence the money supply. 
C)  give depositors a safe place to keep their money. 
D)  buy and sell gold. 
A)  make loans to households. 
B)  influence the money supply. 
C)  give depositors a safe place to keep their money. 
D)  buy and sell gold.

Question 19

Credit cards are a medium of exchange.

Accepted Answer

A) True 
 B)False

Question 20

A decrease in the money supply might indicate that the Fed had

Accepted Answer

A)  purchased bonds to increase banks reserves. 
B)  purchased bonds to decrease banks reserves. 
C)  sold bonds to increase banks reserves. 
D)  sold bonds to decrease banks reserves. 
A)  purchased bonds to increase banks reserves. 
B)  purchased bonds to decrease banks reserves. 
C)  sold bonds to increase banks reserves. 
D)  sold bonds to decrease banks reserves.

What does the text mean by the question, "Where Is All the Currency?" How does it answer the question?

In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases.

Monetary policy is determined by a committee whose voting members include all the presidents of the regional Federal Reserve Banks.

To increase the money supply, the Fed could

Which of the following is not a tool of monetary policy?

In an economy that relies on barter, trade requires a double-coincidence of wants.

When banks decide to increase their reserves, the money supply will holding all else constant).

Which of the following is both a store of value and regularly used as a medium of exchange?

Which of the following can the Fed do to change the money supply?

Money is

An open-market sale

The New York Federal Reserve Bank

Are credit cards and debit cards money? What's the difference between credit and debit cards?

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?

Roundabout trade decreases production.

Which of the following is included in M1 and M2?

Members of the Board of Governors are appointed by the president of the U.S. and confirmed by the U.S. Senate.

In a system of 100-percent-reserve banking, the purpose of a bank is to

Credit cards are a medium of exchange.

A decrease in the money supply might indicate that the Fed had

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 11: The Monetary System

What does the text mean by the question, "Where Is All the Currency?" How does it answer the question?

In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases.

Monetary policy is determined by a committee whose voting members include all the presidents of the regional Federal Reserve Banks.

To increase the money supply, the Fed could

Which of the following is not a tool of monetary policy?

In an economy that relies on barter, trade requires a double-coincidence of wants.

When banks decide to increase their reserves, the money supply will holding all else constant).

Which of the following is both a store of value and regularly used as a medium of exchange?

Which of the following can the Fed do to change the money supply?

Money is

An open-market sale

The New York Federal Reserve Bank

Are credit cards and debit cards money? What's the difference between credit and debit cards?

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?

Roundabout trade decreases production.

Which of the following is included in M1 and M2?

Members of the Board of Governors are appointed by the president of the U.S. and confirmed by the U.S. Senate.

In a system of 100-percent-reserve banking, the purpose of a bank is to

Credit cards are a medium of exchange.

A decrease in the money supply might indicate that the Fed had

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters