Exam 13: Monetary Policy: Conventional and Unconventional

Figure 13-1 -In Figure 13-1,which panel shows the effect of a Fed open market sale on the interest rate?

____ is the rate that applies when banks borrow and lend reserves to one another.

When you use the word income,you mean a value that must be qualified by a length of time.

Figure 13-1 -In Figure 13-1,which panel shows the effect of inflation on the interest rate?

Member banks of the Federal Reserve System

Why does the Fed have imperfect control over the money supply?

How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? Illustrate the interest rate effect by drawing the appropriate graph.

When the Fed wants to expand the money supply,it

Are money and income the same thing?

The current chair of the Federal Reserve System is

The Federal Reserve Board of Governors

Does the Fed have good control over the money supply?

Personal consumption spending is the most sensitive component of aggregate demand to monetary policy.

The Federal Reserve System can be described as a bank for bankers.

The tool most frequently relied on by the Fed is

Assume the required reserve ratio is 20 percent and the FOMC orders an open market purchase of $100 million in government securities from member banks.If the oversimplified money multiplier is assumed,then the money supply will

How are Treasury bond prices affected when the interest rate rises?

Assume the required reserve ratio is 10 percent and the FOMC orders an open market sale of $50 million in government securities from member banks.If the oversimplified money multiplier is assumed,then the money supply will

People are often heard saying,"She makes good money." An economic interpretation of this statement would be that

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