Exam 32: Inflation and the Quantity Theory of Money

If the Fed decides to increase the money supply by $200 million, it can buy government bonds in the open market for less than $200 million.

Which definition of money has the greatest value in the money pyramid?

The narrowest measure of the U.S. money supply is

Required reserves are the percent of

The existence of the discount window makes private bank loans work more smoothly, even if the discount window isn't being used.

The Federal Reserve can influence the economy by shifting

Explain how the Fed is structured and controlled.

Which of the following rates does the Fed actually set?

Which of the following serve as a means of payment in the United States?

The members of the Board of Governors of the Federal Reserve are appointed for

When the Federal Reserve makes an open market purchase, the amount of money available for the banking system to loan

Reference: Ref 15-1 (Table: Statistics for a Small Economy) The table shows some statistics for a small economy. Using only the information provided, M2 in this country amounts to

Systemic risk is

When banks borrow directly from the Fed, the interest rate they pay is called the

An increase in money growth will cause the economy's AD curve to

Commercial banks make profits primarily through

What part of the money pyramid does the Fed have direct control over?

The most liquid asset is cash.

The main assets held by banks are

According to the data in the money supply components table, the total amount of M1 equals