Exam 13: Monetary Policy Conventional and Unconventional

In Latin America,countries like Brazil and Mexico have found it necessary to grant their central banks more independence in order to

Which of the following is an income number?

Which of the following is the most frequently used tool of monetary policy?

The correct chain of causation illustrating the changes caused by monetary policy is

Higher price levels will eventually lead to lower interest rates as people reduce their demand for money.

The Fed's purchase and sale of government securities is known as

The Fed is unlike other central banks in that it

Money is a concept that has a certain value at a point in time.

The creation of new bank reserves could lead to a multiple increase in the money supply.

Income is measured as

Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market.What only about 30 percent of surveyed investors knew was that as bond prices rise,interest rates

Which one of the following policies might the Fed initiate if it wanted to increase the money supply?

The Fed relies on open market operations,which work

An increase in the reserve supply

Explain the concept of 'lender of last resort'.What is discount rate?

Open market operations affect the supply of reserves.

Figure 13-1 -In Figure 13-1,which panel shows the effect of an expansionary monetary policy on the interest rate?

Open market operations generally involve the purchase and sales of

The principal difference between income and money is that income is a ____ and money is a ____.

When the Fed wants to expand the money supply,it