Exam 13: The Role of Money in the Macro Economy

In the money market,a decrease in money demand will:

Money serves all of the following functions except:

The interest rate that banks charge on loans to their best customers is called the:

The primary monetary policy tool is reserve requirements.

The interest rate the Federal Reserve charges banks which borrow reserves at the Federal Reserve's discount window is called the:

Deposits held by commercial banks are insured by the:

The legislation that made all depository institutions regardless of Federal Reserve membership subject to the reserve requirements established by the Fed is called the:

In the context of the money market,graphically illustrate and explain the impact of an increase in the use of ATM machines on interest rates.

The central bank of the United States is the:

You are given the following information on the banking system. Reserve requirement rr = 1.00 Currency-deposit ratio c = 0.10 Excess reserve ratio e = 0.00 Compute the simple deposit and money multipliers.

The primary responsibility of conducting monetary policy rests with the:

Expansionary monetary policy is achieved by:

The discount rate is influenced by Fed actions whereas the Fed sets the federal funds rate.

A subway token does not fulfill the three functions of money.

In the context of the money market,graphically illustrate and explain the impact of an expansionary monetary policy on interest rates.

Contractionary monetary policy is achieved by:

The function of money that enables prices of goods and services to be quoted is called:

The simple deposit multiplier is:

The reserve requirement is 0.10.What is the simple deposit multiplier?

In the money market,an excess supply of money is equivalent to an excess supply of bonds.