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ECON102 quiz 4




Question;Quiz 4;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 supply is indeterminate.; 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 recall procedures.; 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? delaying transfer of money among banks; raising the discount rate; printing more money; 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.; of money through open market operations.; 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.


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