Question 1

Monetary policy is conducted by

Accepted Answer

A)  the Banking Committee of Congress. 
B)  the President's Council of Economic Advisers. 
C)  the Federal Open Market Committee. 
D)  Chamber of Commerce. 
A)  the Banking Committee of Congress. 
B)  the President's Council of Economic Advisers. 
C)  the Federal Open Market Committee. 
D)  Chamber of Commerce. C

Question 2

The central bank of the United States is called

Accepted Answer

A)  the Bank of America. 
B)  the U.S. Bank. 
C)  the Central Bank of the United States. 
D)  the Federal Reserve. 
A)  the Bank of America. 
B)  the U.S. Bank. 
C)  the Central Bank of the United States. 
D)  the Federal Reserve. D

Question 3

During a recession, the Federal Reserve may try to lower interest rates by

Accepted Answer

A)  increasing the required reserve ratio. 
B)  selling government bonds to banks or individuals. 
C)  buying government bonds from banks or individuals. 
D)  sending directives to bank officials. 
A)  increasing the required reserve ratio. 
B)  selling government bonds to banks or individuals. 
C)  buying government bonds from banks or individuals. 
D)  sending directives to bank officials. C

Question 4

The Board of Governors of the Federal Reserve are

Accepted Answer

A)  appointed for life like Supreme Court Justices. 
B)  elected by the governors of the 50 states. 
C)  appointed by the Senate and confirmed by the Supreme Court. 
D)  appointed by the President and confirmed by the Senate. 
A)  appointed for life like Supreme Court Justices. 
B)  elected by the governors of the 50 states. 
C)  appointed by the Senate and confirmed by the Supreme Court. 
D)  appointed by the President and confirmed by the Senate.

Question 5

Monetary policy may be defined as

Accepted Answer

A)  a policy designed to increase or decrease the flow of money and credit. 
B)  a policy designed to increase or decrease the ability of consumers to spend money. 
C)  a policy designed to increase the convertibility of paper money into gold. 
D)  a policy designed to develop money that is more resistant to counterfeiters. 
A)  a policy designed to increase or decrease the flow of money and credit. 
B)  a policy designed to increase or decrease the ability of consumers to spend money. 
C)  a policy designed to increase the convertibility of paper money into gold. 
D)  a policy designed to develop money that is more resistant to counterfeiters.

Question 6

The function of the Federal Deposit Insurance Corporation is to

Accepted Answer

A)  conduct monetary policy. 
B)  issue new currency and coin. 
C)  insure loans made by members of Congress. 
D)  insure bank deposits. 
A)  conduct monetary policy. 
B)  issue new currency and coin. 
C)  insure loans made by members of Congress. 
D)  insure bank deposits.

Question 7

How do taxes affect income inequality?

Accepted Answer

A)  Taxes have no effect on income inequality. 
B)  Taxes tend to reduce income inequality, because only about 40% of taxes are progressive. 
C)  Taxes tend to increase income inequality, because only about 40% of taxes are regressive. 
D)  Taxes tend to reduce income inequality, because only about 40% of taxes are proportional. 
A)  Taxes have no effect on income inequality. 
B)  Taxes tend to reduce income inequality, because only about 40% of taxes are progressive. 
C)  Taxes tend to increase income inequality, because only about 40% of taxes are regressive. 
D)  Taxes tend to reduce income inequality, because only about 40% of taxes are proportional.

Question 8

During inflationary periods, the Federal Reserve can be expected to

Accepted Answer

A)  try to lower interest rates. 
B)  try to raise interest rates. 
C)  try lend more reserves to banks. 
D)  try to lower the required reserve ratio. 
A)  try to lower interest rates. 
B)  try to raise interest rates. 
C)  try lend more reserves to banks. 
D)  try to lower the required reserve ratio.

Question 9

The Federal Reserve makes loans to individual banks at an interest rate

Accepted Answer

A)  called the federal funds rate. 
B)  called the discount rate. 
C)  called the prime rate. 
D)  called the rate of last resort. 
A)  called the federal funds rate. 
B)  called the discount rate. 
C)  called the prime rate. 
D)  called the rate of last resort.

Question 10

The interest rate that banks charge each other for overnight loans is called

Accepted Answer

A)  the prime rate. 
B)  the federal funds rate. 
C)  the discount rate. 
D)  the penalty rate. 
A)  the prime rate. 
B)  the federal funds rate. 
C)  the discount rate. 
D)  the penalty rate.

Monetary policy is conducted by

The central bank of the United States is called

During a recession, the Federal Reserve may try to lower interest rates by

The Board of Governors of the Federal Reserve are

Monetary policy may be defined as

The function of the Federal Deposit Insurance Corporation is to

How do taxes affect income inequality?

During inflationary periods, the Federal Reserve can be expected to

The Federal Reserve makes loans to individual banks at an interest rate

The interest rate that banks charge each other for overnight loans is called

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters

Exam 15: Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Monetary policy is conducted by

The central bank of the United States is called

During a recession, the Federal Reserve may try to lower interest rates by

The Board of Governors of the Federal Reserve are

Monetary policy may be defined as

The function of the Federal Deposit Insurance Corporation is to

How do taxes affect income inequality?

During inflationary periods, the Federal Reserve can be expected to

The Federal Reserve makes loans to individual banks at an interest rate

The interest rate that banks charge each other for overnight loans is called

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters