homeworkstudyhelp

Our Services

Get 15% Discount on your First Order

Multiple Choice Macroeconomics QUESTIONS 1. The Federal Reserve…

Multiple Choice Macroeconomics QUESTIONS

1. The Federal Reserve System is the

a. federal government agency that collects taxes and spends these receipts on tanks, bridges, government employees’

salaries, etc.

b. company that delivers packages to your front door.

c. central bank of the United States.

d. federal government agency that collects and disseminates all the economic data that economists are interested in.

 

2. The Board of Governors of the Federal Reserve is part of a larger policy-making group called the

a. Senate Banking Committee.

b. Federal Deposit Insurance Corporation.

c. American Banking Association.

d. Federal Open Market Committee.

 

3. Which of the following is not a major responsibility of the Fed?

a. supplying the economy with paper money

b. providing check-clearing services

c. supervising member banks

d. serving as fiscal agent for the Treasury

e. All of the above are major responsibilities of the Fed.

 

4. Which of the following statements is false?

a. The Fed serves as the lender of last resort for banks.

b. The Fed serves as a fiscal agent for the U.S. Treasury.

c. A major responsibility of the Fed is to control the nation’s money supply.

d. The federal government is the Fed’s banker.

 

S. When a check is written on an account at Bank A and deposited in Bank B, the reserve account of

reserves of the entire banking system will

a. Bank A; rise

b. Bank A; remain constant

c. Bank B; rise

d. Bank B; remain constant

will rise and

 

6. When we speak of the Fed’s responsibility to supervise member banks, we are saying that the

a. Fed’s advisory board will help member banks manage their assets and liabilities.

b. Fed’s Open Market Committee will advise member banks regarding the purchase and sale of government securities.

c. Fed’s Board of Governors will advise member banks regarding the appropriate interest rates to be charged on various

loans.

d. Fed will advise member banks regarding the nature of loans and compliance with regulations.

. Fed will advise member banks about the proper control of each individual bank’s money supply.

 

7. Open market operations are the

a. buying and selling of Federal Reserve Notes in the open market.

b. means by which the Fed supplies the economy with currency.

c. means by which the Fed acts as the government’s banker.

d. buying and selling of government securities by the Fed.

e. buying and selling of government securities by the Treasury.

 

8. The funds the Fed receives from selling government securities

a. are deposited in a commercial bank.

b. disappear into thin air

are turned over to the Office of Management and Budget in Washington, D.C

d. are deposited in the U.S. Treasury.

 

9. When the federal government incurs a budget deficit, it will

a. mint more coins and spend them.

b. create money out of thin air.

c. impose a special tax on all income earners.

d. borrow money from the Federal Reserve System by issuing securities.

e. borrow money from the public by issuing government securities.

 

10. The three members of the commission that originally drew up the boundaries of the Federal Reserve Districts and the locations of

the district banks were the

a. Comptroller of the Currency, the Secretary of the Treasury, and the Secretary of Agriculture.

b. Secretary of State, the Secretary of the Treasury, and the Speaker of the House of Representatives.

c. Secretary of State, the Secretary of Commerce, and the Vice President.

d. Secretary of the Treasury, the Secretary of Commerce, and the Vice President.

 

11. If the Fed wants to increase the money supply through open market operations, it will

a. purchase government securities.

b. sell government securities.

c. first purchase, then sell, government securities.

d. lend more reserves to commercial banks.

 

12. Suppose the Fed forecasts a reduction in cash leakages. It might offset the effect of this on the money supply by

a. buying government securities.

b. selling government securities.

c. lowering the required reserve ratio.

d. lowering the discount rate.

 

13. An “open market operation” is said to occur when the Fed

a. arranges for the merger of two banks.

b. changes the interest rate at which it lends reserves.

c. transfers reserves between banks.

d. buys or sells government securities.

 

14. If banks are currently holding zero excess reserves and the Fed lowers the required reserve ratio, which of the following wil

happen?

a. Banks will have a reserve deficiency.

b. Banks will have positive excess reserves.

c. Banks will extend fewer loans.

d. Banks will call in some of their loans to meet the reserve deficiency.

 

15. The sale of government securities by the Fed

a. decreases the supply of money.

b. increases the supply of money.

c. decreases the demand for money.

d. increases the demand for money.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Explain whether each of the following is counted in the M1 measure…

Explain whether each of the following is counted in the M1 measure of the money supply: Cash that you have been saving from birthdays and special occasions. Money in your savings account at your credit union. Money in your checking account at your credit union. Visa gift cards. Available balance

Which of the following best describes how the Federal Reserve might…

Which of the following best describes how the Federal Reserve might use the current ample reserves framework to reduce inflation during an expansion to achieve its low and predictable levels of inflation objective?   Buy Treasury securities in the open market to increase the FFR.   Sell Treasury securities in

What is the process by which the free market economy determines…

What is the process by which the free market economy determines what goods and services should be produced? And how do non-free market economies decide which goods to produce? In general, what are the differences between market and centrally planned economies? You can contrast free-market economies like the USA with

You are a single taxpayer and your annual income is $175,000….

You are a single taxpayer and your annual income is $175,000. Marginal tax rate is 28%. Calculate the total taxes that you owe the federal government for the year. Also calculate your average tax rate (ATR). How does it compare with the marginal tax rate in your income tax bracket?

Classical economists belief that prices and quantities adjust to…

Classical economists belief that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run.  On the contrary, Keynesian economists believe because of price and wage rigidities the economy’s equilibrium output in the long run

Classical economists believe that prices and quantities adjust to…

Classical economists believe that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run.  On the contrary, Keynesian economists believe because of price and wage rigidities the economy’s equilibrium output, in the long run,

After reviewing your chapters and watching the video below, answer…

After reviewing your chapters and watching the video below, answer the questions presented. Economic Schools of Thought: Crash Course Economics #14   Duration: 10:05User: n/a – Added: 11/6/15   https://www.youtube.com/watch?v=tZvjh1dxz08   Questions: 1. Economists believe in the “Long-run neutrality of money”; what does that mean? If monetary policies help in the short run but do

Suppose that Darnell, an economist from a business school in…

Suppose that Darnell, an economist from a business school in Georgia, and Eleanor, an economist from a public television program, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:   Eleanor: Thanks to recent financial crises, the concept of bailouts is a hot topic for

Please answer all three questions below and kindly please answer…

Please answer all three questions below and kindly please answer correctly and carefully.    2. Complete the following table by selecting the term that matches each definition. Below Please answer this question as well and choose one option. 1. A graphical object showing the relationship between the price of a good and

1. Most countries prevent the legal sale of organs. While Iranian…

1. Most countries prevent the legal sale of organs. While Iranian citizens can sell their kidneys, there still exists a price ceiling of $4,600. Compare and contrast the impact of rent control and the organ price ceiling in Iran.  2. Search of the price of kidneys on the black market

The fallacy of composition: ​A) is the assumption that what is…

The fallacy of composition: ​A) is the assumption that what is true for the parts must also be true for the whole ​B) refers to compositions that are logically inconsistent ​C) states that many economic theories are fallacious ​D) is the assertion that the whole is always more than its

Trend Line method: Construct a potential GDP estimate is by fitting…

Trend Line method: Construct a potential GDP estimate is by fitting a trend line through actual GDP. The trend is interpreted as a measure of the economy’s potential output and the cycle as a measure of the output gap. The trick is to remove the cyclical changes.­ 2.      The Hodrick-Prescott filter:

(C) How does the Production Possibilities Frontier (PPF) (also…

(C) How does the Production Possibilities Frontier (PPF) (also called as Production Possibilities Curve (PPC) illustrate the concept of trade-offs?    (D) How do we describe points (1) On the PPF (2) Inside the PPF, and (3) Beyond the PPF in terms of production efficiency?