322-12

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Author:
SAngell3
ID:
222699
Filename:
322-12
Updated:
2013-06-06 13:43:25
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322 12
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Description:
322-12
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  1. If the currency deposit ratio is equal to 1.15, then a household's wish would be to maintain $1.15 for every one dollar they maintain in their 401(k).  

    A) True  
    B) False
    B) False
  2. The currency deposit ratio is used to determine the money multiplier.  

    A) True  
    B) False
    A) True  
  3. Money may be used to store purchasing power; defined this way, it includes savings accounts from the money supply definition.  

    A) True  
    B) False
    A) True
  4. The power to regulate the quantity and value of money has been delegated by Congress to the Federal Reserve.  

    A) True  
    B) False
    A) True  
  5. If the central bank raises interest rates, there will be an expansion of the economy.  

    A) True  
    B) False
    B) False
  6. The desire of households to maintain a desired balance between the currency they hold and their checking accounts is called the:  

    A) transaction deposit.  
    B) transaction currency.  
    C) currency-deposit ratio.  
    D) all of the above  
    E) none of the above
    C) currency-deposit ratio.  
    (this multiple choice question has been scrambled)
  7. According to your text, the functions of central banks usually include:  

    A) control of the money supply.  
    B) stabilization of the money and capital markets.  
    C) maintaining and improving a nation's payment mechanism.  
    D) all of the above  
    E) none of the above
    D) all of the above  
  8. The national economic goal of reasonable stability in the general price level for all goods and services tends to conflict, according to your text, with the goal of:  

    A) stable conditions in the financial markets.  
    B) an improved balance-of-payments position.  
    C) stability of the global markets.  
    D) rising nominal income and government tax collections.  
    E) none of the above
    E) none of the above
  9. Central banks can exercise influence on conditions in the economy and financial system via the:  

    A) import/export (trade balance) channel.  
    B) PBS channel.  
    C) credit channel.  
    D) all of the above  
    E) A and C only
    C) credit channel.  
    (this multiple choice question has been scrambled)
  10. ______________________ appear(s) to be becoming the most popular monetary policy tool around the globe.  

    A) Initial public offerings (IPOs)  
    B) Open pit operations  
    C) Pegging currency to the U.S. dollar  
    D) all of the above  
    E) none of the above
    E) none of the above

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