Question 1

Which of the following statements about monetary policy is true?

Accepted Answer

A)  Unlike fiscal policy, there is no delay between the Fed's enacting a policy and the policy's effects. 
B)  The Fed's policies tend to take effect more quickly and with less political influence than fiscal policy. 
C)  Monetary policy has an equal impact on short-term and long-term interest rates. 
D)  The Fed controls most interest rates directly by telling banks and other financial institutions what interest rate they must charge for common loans. 
A)  Unlike fiscal policy, there is no delay between the Fed's enacting a policy and the policy's effects. 
B)  The Fed's policies tend to take effect more quickly and with less political influence than fiscal policy. 
C)  Monetary policy has an equal impact on short-term and long-term interest rates. 
D)  The Fed controls most interest rates directly by telling banks and other financial institutions what interest rate they must charge for common loans.

Question 2

The discount window allows the Fed to lend money to financial institutions that are running short of funds.

Accepted Answer

A) True 
 B)False

Question 3

When the Federal Reserve makes more money available for banks to lend,the demand curve for loans shifts to the right.

Accepted Answer

A) True 
 B)False

Which of the following statements about monetary policy is true?

The discount window allows the Fed to lend money to financial institutions that are running short of funds.

When the Federal Reserve makes more money available for banks to lend,the demand curve for loans shifts to the right.

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 12: Monetary Policy

Which of the following statements about monetary policy is true?

The discount window allows the Fed to lend money to financial institutions that are running short of funds.

When the Federal Reserve makes more money available for banks to lend,the demand curve for loans shifts to the right.

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters