Question 39(1 point)

Which one of these is a way that banks create money?

Question 39 options:

a.By lending money

b.By hoarding reserves

c.By borrowing from foreign entities

d.By printing money automatically

Question 40(1 point)

Which of these are a complication of monetary policy?

Question 40 options:

a.Consumer expectations

b.Operational lag

c.Administrative lag

d.Recognition lag

Question 41(1 point)

Expansionary fiscal policy is better for recessions than expansionary monetary policy.

Question 41 options:

a.True

b.False

Question 42(1 point)

The Federal Reserve will implement expansionary monetary policy to increase the money supply during an inflation.

Question 42 options:

a.True

b.False

Question 43(1 point)

The Federal Reserve will increase interest rates to discourage borrowing and in turn, reduce spending as a response to...

Question 43 options:

a.Increasing supply of goods

b.Cost-push inflation

c.Recession

d.Demand-pull inflation

Question 44(1 point)

M2 Money Supply is equal to M1 but also includes:

Question 44 options:

a.Safety Deposit Boxes

b.Near monies such as gold and silver bars

c.Credit Cards

d.Near monies such as savings accounts and personal money market mutual funds

Question 45(1 point)

Which point in history best fits the below description:

The economy was experiencing full employment and economic growth, shifting the Aggregate Demand curve to the right. Around this time, there was a technological boom, which shifted the Aggregate Supply curve to the right, creating a new equilibrium for the market which resulted in more output and very little inflation.

Question 45 options:

a.Prosperity of the 1990's

b.The Great Depression

c.Vietnam War

d.Energy Crisis of 1970's