Question
Question 19(1 point) Suppose Anna saves $100 at an interest rate of 9%.How much will she have in 40 years? Question 19 options: $460 $974
Question 19(1 point)
Suppose Anna saves $100 at an interest rate of 9%.How much will she have in 40 years?
Question 19 options:
$460
$974
$3,141
None of the above
Question 20(1 point)
Suppose Elsa and Anna each save money at the same interest rate for 10 years.If Elsa initially saves a greater amount of money than Anna, who will have more money in 10 years?
Question 20 options:
Anna
Elsa
Neither they will have the same amount
Not enough information to determine
Question 21(1 point)
Suppose Jane needs $1,000,000 in 20 years and can save at an interest rate of 7%.How much money must she need to save now?
Question 21 options:
$202,652
$298,021
$756,205
None of the above
Question 22(1 point)
Suppose X Corp. issued one-year discount bonds with a face value of $20,000 and the bonds were sold for $18,500.What was the interest rate for these one-year discount bonds?
Question 22 options:
7.50%
8.11%
9.57%
None of the above
Question 23(1 point)
Suppose Tyson holds some bonds issued by X Corp.If those bonds become more risky, then their price will _____.
Question 23 options:
increase
decrease
not change
Question 24(1 point)
Suppose Tyson holds some bonds issued by X Corp.If those bonds become more risky, then their interest rate will _____.
Question 24 options:
increase
decrease
not change
Question 25(1 point)
In the model of the market for loanable funds, which of the following best describes why the demand curve is downward sloping?
Question 25 options:
The higher the interest rate, the less likely households are to spend
The higher the interest rate, the less likely firms are invest
The higher the interest rate, the more likely firms are to borrow
The higher the interest rate, the less likely households are to save
Question 26(1 point)
Consider the market for loanable funds.If economic conditions are expected to become better, then the demand for loanable funds will _____ and the supply of loanable funds will _____.
Question 26 options:
decrease; not change
decrease; decrease
not change; increase
increase; decrease
Question 27(1 point)
Consider the market for loanable funds.If economic conditions are expected to become better, then the interest rate will _____.
Question 27 options:
increase
decrease
be indeterminate
Question 28(1 point)
Consider the market for loanable funds.If economic conditions are expected to become better, then the quantity of saving/borrowing that occurs will _____.
Question 28 options:
increase
decrease
be indeterminate
Question 29(1 point)
When the government budget deficit increases, investment will _____.
Question 29 options:
increase
decrease
not change
Question 30(1 point)
A U.S. $1 bill is which type of currency?
Question 30 options:
Commodity money
Fiat money
Electronic money
None of the above
Question 31(1 point)
The amount of funds that a bank chooses to keep on hand beyond what it is required to is called:
Question 31 options:
excess reserves.
excess deposits.
federal funds.
extra holdings.
Question 32(1 point)
Suppose Bank Y currently has $300M in demand deposits and $45M in reserves.Bank Xs reserve ratio is _____.
Question 32 options:
10%
12%
15%
none of the above
Question 33(1 point)
Suppose Bank Y currently has $300M in demand deposits and $45M in reserves.If all the banks in the economy have the same reserve ratio as Bank Y, then the money multiplier in the economy is _____.
Question 33 options:
1.5
3
6.67
none of the above
Question 34(1 point)
The Federal Open Market Committee consists of _____ voting members.
Question 34 options:
5
7
12
19
Question 35(1 point)
The "dual mandate" refers to the:
Question 35 options:
twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employment.
orders given to both the Federal Reserve and the Treasury department to ensure price stability.
responsibility given to the Federal Reserve and the Congress to conduct monetary and fiscal policy respectively, to ensure price stability.
role that the Fed has by being a governmental agency but also must act in the best interest of all citizens of the United States.
Question 36(1 point)
The interest rate on loans from one bank to another bank is referred to as _____.
Question 36 options:
the discount rate
the federal funds rate
the required reserve ratio
the inflation rate
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