All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
macroeconomics principles

Questions and Answers of Macroeconomics Principles

The limits set by law for reserves on checking accounts are between . ( LO2 , 5 )a) 0% and 9%b) 3% and 12%c) 8% and 14%d) 12% and 18%
Which is the most accurate statement? The Federal Reserve . ( LO5 )a) markets new Treasury bills, notes, certifi cates, and bondsb) runs a check clearing operation for U.S.government checks, but does
Statement 1: Currency leakages take place especially during times of recession and low interest rates.Statement 2: The process of check clearing is being partially replaced by the electronic
Suppose that the deposit expansion multiplier were 7.After taking into account its three modifi cations, we might estimate the true deposit multiplier to be. ( LO3 )a) 14d) 4b) 9e) 1c) 7
Reserve requirements are changed . ( LO2)a) once a weekb) three or four times a yearc) once every two or three yearsd) once every ten or fi fteen yearse) only if Congress passes a new law
One of the main results of the Depository Institutions Deregulation and Monetary Control Act of 1980 may be to . ( LO7 )a) lessen the number of fi nancial institutions in the United Statesb) increase
The main job of the Fed is to . ( LO6 )a) control the rate of growth of the money supplyb) to manage the national debtc) provide low-interest loans to all fi nancial institutionsd) raise and lower
The Depository Institutions Deregulation and Monetary Control Act of 1980 had three key provisions, one of which was . ( LO7 )a) uniform reserve requirements for all fi nancial institutionsb) zero
Which statement is true? ( LO6 )a) The Fed is more effective at fi ghting infl ation than fi ghting recession.b) The Fed is more effective at fi ghting recession than fi ghting infl ation.c) The Fed
Which one of the following is the most accurate statement? ( LO8 )a) The impact lag of monetary policy is considerably shorter than the impact lag of fi scal policy.b) The recognition lag of monetary
Which statement is the most accurate? ( LO5 )a) The Federal funds rate and the discount rate rise and fall together.b) The prime rate of interest is usually about a half percentage point below the
To buy securities, the Fed offers . ( LO5 )a) a low price and drives up interest ratesb) a low price and drives down interest ratesc) a high price and drives up interest ratesd) a high price and
When the Fed wants to increase the money supply, it. ( LO5 )a) raises the Federal funds rateb) raises reserve requirementsc) sells securitiesd) buys securities
Open-market operations are . ( LO5 )a) the buying and selling of U.S. government securities by the Fedb) borrowing by banks from the Fedc) the selling of U.S. government securities by the U.S.
Check clearing is done by . ( LO1 , 2 )a) the bank where a check is depositedb) the bank on which a check is writtenc) the Federal Reserve Systemd) the comptroller of the currency
Each of the following is a leakage from the deposit expansion multiplier except . ( LO3 )a) cashb) the foreign trade imbalancec) excess reservesd) all of these are leakages
The larger the reserve requirement, the. ( LO2 )a) smaller the deposit expansion multiplierb) larger the deposit expansion multiplierc) easier it is for banks to lend money
Which of these is a secondary reserve? ( LO2 )a) Treasury billsb) goldc) vault cashd) deposits at the Federal Reserve District Bank
Legal reserve requirements are changed. ( LO2 )a) very oftenb) on rare occasionsc) neverd) none of these
Basically the Board of Governors is. ( LO1 )a) independentb) dependent on the president and Congressc) powerlessd) on a par with the District Banks
Control of the Federal Reserve System is vested in. ( LO1 )a) the presidentb) Congressc) the Board of Governorsd) the District Banks
A liquidity trap most likely will occur when. ( LO4 )a) there is a severe recession and interest rates are relatively highb) there is a severe recession and interest rates are relatively lowc) there
Monetary policy is conducted by . ( LO1 )a) the president onlyb) Congress onlyc) the president and Congressd) the Federal Reserve
To restrict monetary growth, the Federal Reserve will. ( LO2 )a) raise the Federal funds rate and sell securitiesb) raise the Federal funds rate and buy securitiesc) lower the Federal funds rate and
The most important Federal Reserve policy weapon is. ( LO1 , 2 )a) changing reserve requirementsb) changing the discount ratec) moral suasiond) open-market operations
Which statement is true? ( LO1 )a) The United States has always had a central bank.b) The United States has never had a central bank.c) The United States had a central bank until 1913.d) The United
Fiscal and monetary policy have . ( LO1 )a) the same means and endsb) different means and endsc) the same means and different endsd) different means and the same ends
Practical Application: How well has the Fed done in pursuing its main policy goals since Ben Bernanke became chairman in January 2006?
How is money created and destroyed? Explain the concept of the money multiplier, and discuss the factors that infl uence its size.
What monetary policy tools should the Fed use to achieve the result you recommended in question 8?
What is the current macroeconomic situation in the United States? What should the Fed do about it?
In 1980 and in 1999 two major banking laws were passed. Explain how each law affects bank consolidation.
Why has the power to set the discount rate become a less effective monetary policy tool over the last eight decades?
Draw a diagram showing the impact on bond prices, interest rates, and the level of investment of (a) an expansionary monetary policy; (b) a contractionary monetary policy.
What are open-market operations? How are they conducted to fi ght infl ation and recession?
What is the most important job of the Federal Reserve? What makes it so important?
Is the Federal Reserve more effective in fi ghting recessions or infl ations? Explain your answer, if possible, using a fl ow chart.
Should the Federal Reserve Board of Governors remain independent? What is the strongest argument on either side?
State numerically what would happen to M1 if:(a) Ashley Whittingham brought $1,000 to her bank and deposited it in her checking account;(b) Nicolas Gindorff took $500 out of his checking account and
Initially M1 is 1,000 and M2 is 4,000. Find the size of M1 and M2 if demand deposits rise by 100. ( LO3)
How much would M2 be if M1 were 500;small-denomination time deposits, savings deposits, and money market mutual funds held by individuals totaled 1,200; and large-denomination time deposits were 300?
A goldsmith has 100 gold coins in his safe. If there are 500 receipts in circulation, how much is his reserve ratio? ( LO5 )
(a) A goldsmith has 1,000 gold coins in his safe and 1,000 receipts circulating. How much are his outstanding loans and what is his reserve ratio?(b) The goldsmith then lends out 100 of the
Wal-Mart ( LO9 )a) currently operates hundreds of banks within its stores.b) is currently not a bank.c) does not offer any fi nancial services.d) never exhibited any interest in securing a banking
Which one of the following is the most accurate statement? ( LO10 )a) Banks usually extend overdraft privileges only to their largest depositors.b) Bankers know that if they extend overdraft
Which statement is true? ( LO5 )a) Citigroup, JPMorgan Chase, and Bank of America each hold over $1 trillion in assets.b) Citigroup, JPMorgan Chase, and Bank of America hold just over one-quarter of
Suppose you had no money in your checking account and your bank granted you overdraft privileges. You then went out and charged $20 on your debit card.How much would your bank charge you in fees for
Which one of the following is the most accurate statement about Internet banking? ( LO5 )a) It will never happen because depositors would never trust a bank that has no branches, checkbooks, or
Which seems to be the most appropriate way to lend money to small business borrowers in poor nations? ( LO5 )a) Loans by conventional banks requiring collateralb) Loans by conventional banks not
Each of the following is a useful property of money except . ( LO1 )a) portabilityb) scarcityc) divisibilityd) held only by the rich
To get a bank charter, you need to demonstrate each of the following, except . ( LO6 )a) that your community needs a bank or an additional bankb) that you have suffi cient banking experiencec) that
Which statement is true? ( LO6 )a) Most states allow only unit banking.b) Most states allow unlimited branching.c) Most banks have national charters.d) None of these statements is true.
Which statement is false? ( LO7 )a) About 99 percent of all banks are members of the FDIC.b) If the FDIC runs out of money, the federal government will supply it with more funds.c) The FDIC would
What led to the bankruptcy of many goldsmiths was that they . ( LO5 )a) had a reserve ratio that was too highb) had a reserve ratio that was too lowc) lent out gold coins instead of receiptsd) lent
Which statement is true? ( LO3 )a) Most U.S. currency is held by foreigners.b) We have greatly underestimated the amount of currency circulating in the U.S.c) Russians hold virtually no U.S.
The distinction between commercial banks and other banks is . ( LO5 , 6 )a) very clearb) becoming blurredc) nonexistentd) none of these
People tend to hold more money as . ( LO4)a) incomes rise and credit availability risesb) incomes fall and credit availability fallsc) incomes rise and credit availability fallsd) incomes fall and
As the interest rate rises, the quantity of money demanded . ( LO4 )a) risesb) fallsc) remains about the same
As the price level rises, the amount of money demanded for transactions purposes. ( LO4 )a) risesb) fallsc) remains about the same
John Maynard Keynes identifi ed three motives for holding money. Which motive listed below did Keynes not identify? ( LO4 )a) Transactionsb) Precautionaryc) Psychologicald) Speculative
Which one of the following would be the best defi nition of money? ( LO2 )a) Any asset that can be used to make a purchase.b) A precious commodity such as gold or silver.c) A credit or debit card.d)
The most important way of paying for goods and services is . ( LO2 )a) electronic fund transfersb) goldc) checksd) cashe) prepaid or stored-value cards
The interest rate on business loans the interest rate that banks pay their depositors. ( LO4 )a) is higher thanb) is lower thanc) has no relationship to
Over the last three decades our money supply. ( LO3 )a) grew steadily at about the same rateb) fell steadily at about the same ratec) rose steadily through the 1970s and fell steadily through the
In February 2008 M1 was more than $billion. ( LO3 )a) 600b) 900c) 1,300d) 1,700
When you buy something with a credit card and when you buy something with a debit card . ( LO3 )a) you owe money; you owe moneyb) you owe money; money is taken out of your checking accountc) money is
Which statement is true? ( LO3 )a) Credit cards are a form of money.b) Debit cards are a form of money.c) M2 is about six times the size of M1.d) M1 is about six times the size of M2.
The U.S. dollar is based on currency. ( LO2 )a) Britishb) Frenchc) Dutchd) Spanish 9. Which is not in M2? ( LO3 )a) Currencyb) Demand depositsc) Small-denomination time depositsd) Large-denomination
Which statement is true? ( LO2 )a) Checks are not money.b) A small part of our money supply is silver certifi cates.c) Most of our money supply is in the form of currency.d) None of these statements
Which statement is true? ( LO3 )a) M1 is larger than M2.b) M1 is equal to M2.c) M2 is larger than M1.d) M1 is sometimes larger than M2 and sometimes smaller than M2.
Which one of the following is not part of our money supply? ( LO2 )a) Dollar billsb) Demand depositsc) Traveler’s checksd) Gold
Barter involves . ( LO2 )a) moneyb) specializationc) a double coincidence of wantsd) demand deposits
The basic alternative to money in the United States would be . ( LO2 )a) goldb) barterc) stealingd) the underground economy
Which is the most important job of money? ( LO1 )a) Medium of exchangeb) Store of valuec) Standard of valued) Receipt for gold
Each of the following except is a job of the money supply. ( LO1 )a) medium of exchangeb) store of valuec) standard of valued) receipt for gold
Our money supply is defi ned as M1. But the Board of Governors of the Federal Reserve and many others believe M2 would better defi ne our money supply. Can you think of one reason to support M1 and
What were the conditions that led to the savings and loan debacle?
What happens to the demand for money as (a) the price level rises; and (b) the availability of credit rises? Explain your answers.
In fi scal year 2029 there is a budget defi cit of$1 trillion. The fourth Bush administration, which believes in dynamic scoring, gets Congress to pass a tax cut of $500 billion a year for the next
In Figure 2 : (a) Is there an infl ationary gap or a recessionary gap? (b) How much is it? (c) How much is the multiplier? ( LO1 , 2 , 3 ) Expenditures (in billions of dollars) 8,000 6,000 4,000
Suppose that in the year 2020 our national debt were$10 trillion and our budget defi cit were $300 billion.If a plan to gradually reduce the defi cit and to balance the budget in the year 2030 were
If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles Althaus for writing him a speech, and then Jingles gives $810 to Alayna Noel for installing a computer
If the full-employment GDP is $1 trillion greater than equilibrium GDP and the multiplier is 5, how much is the recessionary gap? ( LO3 )
Suppose that Derek Bowman and Nicole Bowman each have MPCs of .5. If Derek receives one dollar of income, how much of that dollar would he be expected to spend? If Nicole receives all of the money
If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP? ( LO3 )
If GDP is 3,400, the multiplier is 5, and I rises by 15, what is the new level of GDP? ( LO3 )
If I falls by $20 billion and the multiplier is 5, what happens to the level of GDP? ( LO3 )
If C rises by $10 billion and the multiplier is 4, what happens to the level of GDP? ( LO3 )
If the MPC is .6, how much is the multiplier? ( LO3 )
When the MPC is .8, how much is the multiplier? ( LO3)
To remove the gap in Figure 1, what two fi scal policy measures would you recommend? ( LO1 , 2 )
(a) In Figure 1 , is there an infl ationary gap or a recessionary gap? (b) How much is it? (c) How much is the multiplier? ( LO1 , 2 , 3 ) Expenditures 8,000 6,000 4,000 2,000 2,000 + 4,000 C+I+G+Xn
Dynamic scoring is closely related to. ( LO9 )a) the crowding-out effectb) the crowding-in effectc) both the crowding-out and crowding-in effectd) neither the crowding-out nor crowding-in effect
Between 1998 and 2000 the federal budget surplus and the publicly held national debt. ( LO6 , 8)a) rose, rosec) rose, fellb) fell, felld) fell, rose
In 2006 and 2007 we had . ( LO1 , 2 )a) a recessionary gapb) neither an infl ationary gap nor a recessionary gapc) an infl ationary gap
Assuming that present trends continue, the best estimate of our national debt on January 1, 2011 would be . ( LO8 )a) $4 trilliond) $11 trillionb) $6 trillione) $15 trillionc) $8 trillion
The most valid argument against the size of the national debt is that it . ( LO8 )a) will ruin the nation when we have to pay it backb) is owed mainly to foreignersc) leaves future generations less
A major advantage of the automatic stabilizers is that they . ( LO4 )a) simultaneously stabilize the economy and tend to reduce the size of the public debtb) guarantee that the federal budget will be
The main feature of the 2008 economic stimulus package was ( LO7 )a) taxpayer rebates.b) an across-the-board tax cut.b) an increase in spending on food stamps and unemployment benefi ts.d) a large
Which statement is true? ( LO8 )a) The public debt is larger than our GDP.b) The public debt is the sum of our defi cits minus our surpluses over the years since the beginning of the country.c) We

Showing 400 - 500 of 6280

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved