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economics question 6

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Question;5.2;7.;The public debt is the;A) Amount of U.S. paper;currency in circulation;B) Ratio of all past deficits to all past surpluses;C) Total of all past deficits minus all past surpluses;D) Difference between current government expenditures and revenues;11.;Which is an important;problem associated with the public debt?;A) Payments of interest on the debt lead to greater income equality;B) Interest payments on the debt tend to improve economic incentives to work;and produce more unemployment;C) Government borrowing to finance the debt may increase the level of private;investment;D) Payment of interest on the debt held by foreigners transfers real resources;to other countries;5.3;2.;Which of the following is;an example of representative money?;A) an IOU note;B) diamonds;C) gold earrings;D) a fur coat;4.;Which is the definition of;liquidity?;A) Liquidity is the rate of return on assets held in banks;B) Liquidity is the tax rate applied to the earnings from assets held in banks;C) Liquidity is the ease with which financial assets can be converted into;money;D) Liquidity is the profit margin banks can earn on demand deposits;5.;When money specifies the;value of something, what function does it serve?;A) medium of exchange;B) store of value;C) unit of measurement;D) standard of payment;6.;What function does money;serve when you trade it for some good or service?;A) medium of exchange;B) unit of measurement;C) store of value;D) standard of payment;7.;Match the statement to the;definition that fits the best.;A.Johnny washes Mrs. Smith?s car. She offers to pay Johnny with;cookies but Johnny prefers cash.;B.Johnny puts the money he earns from washing cars under his;mattress. He will spend it later.;C.Johnny has $30. He knows he can either buy one pair of jeans or;two CDs with that money.;Measure of Value;Medium of Exchange;Store of Value;Incomplete Submission;You did not answer the following questions;Click Ok to answer these questions.;Upload files;Incomplete Submission;You did not answer the following questions;Click Ok to submit the assessment or Cancel to answer these questions.;Answers Saved;Your answers will be saved, but the assessment will not be;submitted.;Click Ok to finish the assessment later or Cancel to continue taking the;assessment.;Error;The following error occurred;Time warning;You have minute(s) remaining for this question set.;Error;The following error occurred while submitting your answers;Please correct the problem and try submitting again.;Time expired;Your time has expired. Submit the;assessment now or you may be penalized.;Your time has expired. The assessment;will be automatically submitted.;Time warning;You have minute(s) remaining.;Time expired;Your time for this question set has;expired. Proceed to the next question set or submit the assessment now or you;may be penalized.;Your time for this question set has;expired. You will automatically move to the next question set.;Your time for the last question set has;expired. The assessment will be automatically submitted.;Maximum number of choices;allowed is {0}.;1.;If the;Required Reserve Ratio is 20%, and a bank receives a $1,000 dollars, they;would have to keep this amount in reserve, not to be loaned out.;A);$1,000;B) $800;C) $600;D) $200;E) None of it;2.;If the;Required Reserve Ratio is 20%, and a bank receives a $1,000 dollars, they;would loan out this amount.;A);$1,000;B) $800;C) $600;D) $200;E) None of it;3.;The;name for the amount of reserves banks can loan out is;A);Required Reserves;B) Additional Reserves;C) Private Reserves;D) Excess Reserves;E) Minimum Reserves;4.;The;maximum amount of dollars that can be created from a $1,000 through the;fractional reserve system with a required reserve ratio of 20% is;A);$2,000;B) $5,000;C) $8,000;D) $10,000;E) No limit applies;5.;Which;of the following Required Reserve Ratios would allow for the fractional;Reserve System to create the greatest amount of money?;A) 10%;B) 20%;C) 50%;D) 75%;E) 100%;5.4;3.;When a commercial bank has;?excess reserves;A) it is in a position to make additional loans;B) its actual reserves are less than its required reserves;C) it is charging too high an interest rate on its loans;D) its reserves exceed its assets;E) the supply of its loans exceeds the demand for its loans;5.;Which of the following is;correct?;A) The Federal Reserve has 14 regional banks. The Board of Governors;has 12 members who serve 7 year terms.;B) The Federal Reserve has 12 regional banks. The Board of Governors has 7;members who serve 14-year terms.;C) The Federal Reserve has 12 regional banks. The Board of Governors has 14;members who serve 7-year terms.;D) None of the above is correct.;6.;When the Fed wants to;change the money supply, it most frequently;A) conducts open market operations.;B) changes the discount rate.;C) changes the reserve requirement.;D) issues Federal Reserve notes.;8.;Under a fractional reserve;banking system, banks;A) hold more reserves than deposits.;B) generally lend out a majority of the funds deposited.;C) cause the money supply to fall by lending out reserves.;D) All of the above are correct.;1.;If a;bank has $100 in demand deposits and the reserve requirement is 20%, the;amount of the Required Reserves is is __________, and excess reserves;?;A);0, $0;B) $80, $20;C) $0, $100;D) $20, $80;E) Impossible to determine;2.;If the;FED wanted bank reserves to increase (that is, encourage creation of money);it could do which of the following with the corresponding tools:__________the;reserve requirement _________the discount rate__________ government;securities or bonds;A);raise, lower, sell;B) lower, lower, buy;C) raise, raise, buy;D) raise, lower, buy;E) lower, lower, sell;3.;If the;FED wanted bank reserves to decrease (that is, to discourage creation of;money), it could do which of the following with the corresponding tools;the reserve requirement_________the discount rate;government securities or bonds;A);raise, raise, sell;B) lower, raise, sell;C) raise, lower, buy;D) lower, lower, buy;E) raise, raise, buy;4.;If the;FED sells bonds, the public holds _________ money, and the money supply is;A);less, higher;B) more, higher;C) less, lower;D) more, lower;5.;If the;FED buys bonds, the public holds _________ money, and the money supply is;A);less, higher;B) more, higher;C) less, lower;D) more, lower;6.;Lowering;the discount rate makes borrowing __________attractive to banks and may;result in a(n) ___________________ in the money supply.;A);less, increase;B) more, increase;C) less, decrease;D) more, decrease;7.;Raising;the discount rate makes borrowing _________ attractive to banks and may result;in a(n) ___________________ in the money supply.;A);less, increase;B) more, increase;C) less, decrease;D) more, decrease;1.;Which;list contains only actions that increase the money supply?;A) raise the discount rate, make open market purchases;B) raise the discount rate, make open market sales;C) lower the discount rate, make open market purchases;D) lower the discount rate, make open market sales;2.;Which;list contains only actions that decrease the money supply?;A) raise the discount rate, raise the reserve requirement ratio;B) raise the discount rate, lower the reserve requirement ratio;C) lower the discount rate, raise the reserve requirement ratio;D) lower the discount rate, lower the reserve requirement ratio;3.;Which;of the following lists ranks the Fed?s monetary policy tools from most to;least frequently used?;A) discount rate changes, reserve requirement changes, open market;transactions;B) reserve requirement changes, open market transactions, discount rate;changes;C) open market transactions, discount rate changes, reserve requirement;changes;D) None of the above lists ranks the tools correctly.;4.;Which;of the following is not a tool of monetary policy?;A) open market operations;B) reserve requirements;C) the prime rate;D) the discount rate;5.;To increase;the money supply, the Fed could;A) sell government bonds.;B) increase the discount rate.;C) decrease the reserve requirement.;D) Both a and c are correct.;6.;To;decrease the money supply, the Fed could;A) sell government bonds.;B) increase the discount rate.;C) increase the reserve requirement.;D) All of the above are correct.;7.;Reserve;requirements are regulations concerning;A) the amount of deposits banks are allowed to accept.;B) the amount of reserves banks must hold against deposits.;C) the types of loans banks are allowed to make.;D) the interest rate at which banks can borrow from the Fed.;8.;When;the Fed increases the discount rate, banks will borrow;A) more, banks will lend more, and the money supply will increase.;B) more, banks will lend less, and the money supply will decrease.;C) less, banks will lend more, and the money supply will decrease.;D) less, banks will lend less, and the money supply will decrease.;9.;The;discount rate is;A) the interest rate the Fed charges banks.;B) one divided by the reserve ratio.;C) the interest rate banks receive on reserve deposits with the Fed.;D) the interest rate that banks charge on loans to their best customers.;10.;When;the Fed buys government bonds, the reserves of the banking system;A) increase, shifting the money supply curve to the right.;B) increase, shifting the money supply curve to the left.;C) decrease, shifting the money supply curve to the right.;D) decrease, shifting the money supply curve to the left.;11.;Which;of the following shifts aggregate demand to the right?;A) an increase in the price level.;B) an increase in the money supply.;C) a decrease in the price level.;D) a decrease in the money supply.;12.;If the;Fed conducts open-market sales, the money supply;A) increases and aggregate demand shifts right.;B) increases and aggregate demand shifts left.;C) decreases and aggregate demand shifts right.;D) decreases and aggregate demand shifts left.;8.;What is the opportunity;cost for America to make 1 bulldozer instead of cars?;A) 1 car;B) 2 cars;C) 1/2 car;9.;What is the opportunity;cost for Japan to make 1 bulldozer instead ofcars?;A) 1 car;B) 1/3 car;C) 3 cars;10.;Which country has the;lower opportunity cost in making bulldozers?;A) Japan;B) America;C) neither;11.;Who has the absolute;advantage in making cars?;A) Japan;B) America;C) neither;12.;What is the opportunity;cost for Japan making 1 car?;A) 1 bulldozer;B) 3 bulldozers;C) 1/3 of a bulldozer;13.;Who has the comparative;advantage in making bulldozers?;A) Japan;B) America;C) neither

 

Paper#57898 | Written in 18-Jul-2015

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