Exam 4: The Monetary System: What It Is and How It Works

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If the ratio of reserves to deposits (rr) increases, while the ratio of currency to deposits (cr) is constant and the monetary base (B) is constant, then:

(Multiple Choice)

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Question 61

To reduce the money supply, the Bank of Canada:

(Multiple Choice)

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Question 62

The reserve-deposit ratio is determined by:

(Multiple Choice)

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Question 63

How is the money supply affected by the purchase and sale of bonds through open-market operations?

(Essay)

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Question 64

When the Bank of Canada makes an open-market sale, it:

(Multiple Choice)

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Question 65

The use of borrowed funds to supplement existing funds for purposes of investment is called:

(Multiple Choice)

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Question 66

To increase the money supply, the Bank of Canada can:

(Multiple Choice)

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Question 67

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

(Multiple Choice)

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Question 68

The amount of capital that banks are required to hold depends on the:

(Multiple Choice)

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Question 69

Assume that the monetary base (B) is $100 billion, the reserve-deposit ratio (rr) is 0.1, and the currency-deposit ratio (cr) is 0.1. a.What is the money supply? b.If rr changes to 0.2, but cr is 0.1 andBis unchanged, what is the money supply? c.If rr is 0.1 and cr is 0.2, but B is unchanged, what is the money supply?

(Essay)

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Question 70

The Bank of Canada's tools to control the money supply include open-market operations and deposit switching of the Government of Canada's account held at the Bank to and from chartered banks. a.How should each instrument be changed if the Bank of Canada wishes to decrease the money supply? b.Will the change affect the monetary base and/or the money multiplier?

(Essay)

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Question 71

A country that is on a gold standard uses:

(Multiple Choice)

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Question 72

"Some economists believe that the large decline in the U.S. money supply was the primary cause of the Great Depression of the 1930s." Explain how this can be the case.

(Essay)

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Question 73

In Canada, monetary policy is conducted by:

(Multiple Choice)

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Question 74

The central bank in Canada is the:

(Multiple Choice)

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Question 75

The size of the monetary base is determined by:

(Multiple Choice)

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Question 76

If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to _____ multiplied by B.

(Multiple Choice)

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Question 77

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

(Multiple Choice)

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Question 78

The quantitative easing operations conducted by the Federal Reserve between 2007 and 2011 resulted in _ increases in the monetary base and _ increases in money supply.

(Multiple Choice)

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Question 79

Explain at least three factors that will affect the quantity of reserves that a bank wishes to hold.

(Essay)

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Question 80

Showing 61 - 80 of 99

If the ratio of reserves to deposits (rr) increases, while the ratio of currency to deposits (cr) is constant and the monetary base (B) is constant, then:

To reduce the money supply, the Bank of Canada:

The reserve-deposit ratio is determined by:

How is the money supply affected by the purchase and sale of bonds through open-market operations?

When the Bank of Canada makes an open-market sale, it:

The use of borrowed funds to supplement existing funds for purposes of investment is called:

To increase the money supply, the Bank of Canada can:

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

The amount of capital that banks are required to hold depends on the:

A country that is on a gold standard uses:

"Some economists believe that the large decline in the U.S. money supply was the primary cause of the Great Depression of the 1930s." Explain how this can be the case.

In Canada, monetary policy is conducted by:

The central bank in Canada is the:

The size of the monetary base is determined by:

If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to _____ multiplied by B.

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

The quantitative easing operations conducted by the Federal Reserve between 2007 and 2011 resulted in _ increases in the monetary base and _ increases in money supply.

Explain at least three factors that will affect the quantity of reserves that a bank wishes to hold.

The Science of Macroeconomics

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exam 4: The Monetary System: What It Is and How It Works

If the ratio of reserves to deposits (rr) increases, while the ratio of currency to deposits (cr) is constant and the monetary base (B) is constant, then:

To reduce the money supply, the Bank of Canada:

The reserve-deposit ratio is determined by:

How is the money supply affected by the purchase and sale of bonds through open-market operations?

When the Bank of Canada makes an open-market sale, it:

The use of borrowed funds to supplement existing funds for purposes of investment is called:

To increase the money supply, the Bank of Canada can:

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

The amount of capital that banks are required to hold depends on the:

A country that is on a gold standard uses:

"Some economists believe that the large decline in the U.S. money supply was the primary cause of the Great Depression of the 1930s." Explain how this can be the case.

In Canada, monetary policy is conducted by:

The central bank in Canada is the:

The size of the monetary base is determined by:

If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to _____ multiplied by B.

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

The quantitative easing operations conducted by the Federal Reserve between 2007 and 2011 resulted in _____ increases in the monetary base and _____ increases in money supply.

Explain at least three factors that will affect the quantity of reserves that a bank wishes to hold.

The Science of Macroeconomics

The Data of Microeconomics

National Income: Where It Comes From and Where It Goes

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

The quantitative easing operations conducted by the Federal Reserve between 2007 and 2011 resulted in _ increases in the monetary base and _ increases in money supply.