1. In an expansion of the business cycle, the ________ of bonds increases and the ________ curve shifts toward ________, as business investments are expected to be more profitable.

-demand; demand; right

-offer ; offer; left

-demand; demand; left

-offer; offer; right

2.The demand curve for bonds slopes ________, indicating a relationship ________ between the price and the quantity demanded of bonds.

3.In the bond market, the claimants of bonds are ________ and the providers of bonds are ________.

4.When a bank buys a bond from the Federal Reserve government, the reserves in the banking system ________ and the monetary base ________, everything else remains constant.

5.The demand curve for bonds has the usual downward slope, indicating that at ________ prices of the bond, all else equal, the ________ is greater.

6.The bond supply curve slopes upward, indicating that as the price ________, ceteris paribus, the ________ increases.

7.When the interest rate on a bond is ________ the equilibrium interest rate, in the bond market there is an excess of ________ and the interest rate will be ________.

8.The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is...

9.Everything else held constant, an increase in bond liquidity results in a ________ in the demand for bonds, and the demand curve shifts to ________.

10.If the required reserve ratio is 0.12, currency in circulation = $ 500 billion, checking account deposits are $ 600 billion, and excess reserves is $ 0.9 billion. Calculate the money multiplier.

Select one:

2.67

1.35

1.92

2.15