ECON102 quiz 4

ECON102 quiz 4

Subject: Economics    / General Economics
Question
Quiz 4

.apus.edu/portal/tool/32a64e44-f0cc-430d-961c-aff88ac0f877/jsf/select/selectIndex#” title=”Return to Assessment List”>Return to Assessment List

Part 1 of 1 –     70.0/ 100.0 Points

Question 1 of 10
10.0/ 10.0 Points
The supply of money in the U.S. economy is determined primarily by
A.decisions made by the Federal Reserve and the U.S. Treasury.
B.the actions of the Federal Reserve and the banking system.
C.consumers and the banking system.
D.the demand for money in the economy.

Question 2 of 10
0.0/ 10.0 Points
One of the essential functions that a bank performs is
A.purchasing government bonds.
B.creating deposits by lending required reserves.
C.transferring money from savers to lenders.
D.owning assets like real estate.

Question 3 of 10
10.0/ 10.0 Points
At lower interest rates the
A.money supply is indeterminate.
B.money supply is lower.
C.quantity of money demanded is higher.
D.quantity of money demanded is lower.

Question 4 of 10
10.0/ 10.0 Points
From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A.bond recall procedures.
B.open market purchases.
C.backflip bond investments.
D.voluntary redemption procedures

Question 5 of 10
10.0/ 10.0 Points
Selling government bonds through open market operations allows the Federal Reserve to
A.decrease money in the treasury.
B.decrease the money supply in the private sector.
C.receive discounts on future sales.
D.receive a high rate of interest on the bonds.

Question 6 of 10
10.0/ 10.0 Points
How can the Federal Reserve actually increase the money supply?
A.by delaying transfer of money among banks
B.by raising the discount rate
C.by printing more money
D.by purchasing more government bonds in the open market

Question 7 of 10
10.0/ 10.0 Points
An increase in the discount rate
A.reduces the cost of reserves borrowed from the Fed.
B.signals the Fed’s desire to increase the money supply.
C.signals the Fed’s desire to lend increased reserves to banks.
D.increases the cost of reserves borrowed from the Fed.

Question 8 of 10
0.0/ 10.0 Points
The Federal Reserve influences the level of interest rates in the short run by changing the
A.demand for money through open market operations.
B.demand for money through changes in reserve requirements.
C.supply of money through open market operations.
D.supply of money through changes in stock market operations.

Question 9 of 10
10.0/ 10.0 Points
If the quantity of money demanded exceeds the quantity of money supplied, then the
A.interest rate stays the same.
B.interest rate will increase.
C.interest rate will decrease.
D.effect on the interest rate is indeterminate.

Question 10 of 10
0.0/ 10.0 Points
If the Fed wished to decrease inflation, it could
A.increase the reserve requirement or conduct an open market sale.
B.increase the reserve requirement or conduct an open market purchase.
C.decrease the reserve requirement or conduct an open market sale.
D.decrease the reserve requirement or conduct an open market purchase.