Question 1

Which of the following makes timely and appropriate monetary policy more difficult to determine?

Accepted Answer

A) the existence of uncertainty 
B) the presence of lags in the policy process 
C) increasing global integration 
D) All of the above are correct. 
A) the existence of uncertainty 
B) the presence of lags in the policy process 
C) increasing global integration 
D) All of the above are correct.

Question 2

A(n) __________ is a target that is amenable to control by the policy tools and is highly correlated with the intermediate target.

Accepted Answer

A) monetary target 
B) policy directive 
C) operating target 
D) ultimate target 
A) monetary target 
B) policy directive 
C) operating target 
D) ultimate target

Question 3

Which of the following is true?

Accepted Answer

A) The Fed sets growth target ranges for several aggregates in order to be absolutely certain they are correct. 
B) The Fed currently sets growth target ranges for the aggregates because of the instability of the relationship between changes in the aggregates and changes in economic activity. 
C) The Fed uses M1 primarily in the execution of monetary policy because it is the aggregate most widely used to make transactions. 
D) The Fed has become more open in recent years. 
A) The Fed sets growth target ranges for several aggregates in order to be absolutely certain they are correct. 
B) The Fed currently sets growth target ranges for the aggregates because of the instability of the relationship between changes in the aggregates and changes in economic activity. 
C) The Fed uses M1 primarily in the execution of monetary policy because it is the aggregate most widely used to make transactions. 
D) The Fed has become more open in recent years.

Question 4

Which of the following statements is false?

Accepted Answer

A) The breakdown in the traditional relationships between the monetary aggregates and economic activity caused an abandonment of the use of monetary aggregates as either targets or information variables in the early 1990s. 
B) In July 2000, the Fed even stopped providing projections about the growth rates of the monetary aggregates and domestic non-financial debt (DNF
D) . 
C) At the eight FOMC meetings per year, emphasis is placed on long-term goals. 
D) Long-term forecasts include target ranges for inflation and unemployment. 
A) The breakdown in the traditional relationships between the monetary aggregates and economic activity caused an abandonment of the use of monetary aggregates as either targets or information variables in the early 1990s. 
B) In July 2000, the Fed even stopped providing projections about the growth rates of the monetary aggregates and domestic non-financial debt (DNF
D) . 
C) At the eight FOMC meetings per year, emphasis is placed on long-term goals. 
D) Long-term forecasts include target ranges for inflation and unemployment.

Question 5

Which of the following is true?

Accepted Answer

A) A side effect of the Fed's greater openness is that a larger volume of open market operations is needed to hit a given fed funds rate target. 
B) The Fed believes that if it better communicates current and future policy moves, there will be less uncertainty. 
C) The Fed uses M1 primarily in the execution of monetary policy because it is the aggregate most widely used to make transactions. 
D) The Fed has become more secretive in recent years. 
A) A side effect of the Fed's greater openness is that a larger volume of open market operations is needed to hit a given fed funds rate target. 
B) The Fed believes that if it better communicates current and future policy moves, there will be less uncertainty. 
C) The Fed uses M1 primarily in the execution of monetary policy because it is the aggregate most widely used to make transactions. 
D) The Fed has become more secretive in recent years.

Which of the following makes timely and appropriate monetary policy more difficult to determine?

A(n) __________ is a target that is amenable to control by the policy tools and is highly correlated with the intermediate target.

Which of the following is true?

Which of the following statements is false?

Which of the following is true?

Introduction and Overview

Money and Its Role in the Economy

The Overseer: the Federal Reserve System

Financial Markets, Instruments, and Market Makers

Interest Rates and Bond Prices

The Structure of Interest Rates

Market Efficiency and the Flow of Funds Among Sectors

An Introduction to Financial Intermediaries and Risk

Commercial Banking Structure, Regulation, and Performance

Financial Innovation

Financial Instability and Strains on the Financial System

Regulation of the Banking System and the Financial Services Industry

The Debt Markets

The Stock Market

Securities Firms, Mutual Funds, and Financial Conglomerates

How Exchange Rates Are Determined

Forward, Futures, and Options Agreements

The International Financial System

The Fed, Depository Institutions, and the Money Supply Process

The Demand for Real Money Balances and Market Equilibrium

Financial Aspects of the Household, Business, Government, and Rest-Of-The-World Sectors

Aggregate Demand and Aggregate Supply

The Challenges of Monetary Policy

Policy Implementation

Monetary Policy in a Globalized Financial System

Filters

Exam 24: The Process of Monetary Policy Formation

Which of the following makes timely and appropriate monetary policy more difficult to determine?

A(n) __________ is a target that is amenable to control by the policy tools and is highly correlated with the intermediate target.

Which of the following is true?

Which of the following statements is false?

Which of the following is true?

Introduction and Overview

Money and Its Role in the Economy

The Overseer: the Federal Reserve System

Financial Markets, Instruments, and Market Makers

Interest Rates and Bond Prices

The Structure of Interest Rates

Market Efficiency and the Flow of Funds Among Sectors

An Introduction to Financial Intermediaries and Risk

Commercial Banking Structure, Regulation, and Performance

Financial Innovation

Financial Instability and Strains on the Financial System

Regulation of the Banking System and the Financial Services Industry

The Debt Markets

The Stock Market

Securities Firms, Mutual Funds, and Financial Conglomerates

How Exchange Rates Are Determined

Forward, Futures, and Options Agreements

The International Financial System

The Fed, Depository Institutions, and the Money Supply Process

The Demand for Real Money Balances and Market Equilibrium

Financial Aspects of the Household, Business, Government, and Rest-Of-The-World Sectors

Aggregate Demand and Aggregate Supply

The Challenges of Monetary Policy

Policy Implementation

Monetary Policy in a Globalized Financial System

Filters