Nov 23, 2024
HEP 456 Module 6 Section 14 Communication and Dissemination of The Findings Arizona State University
HEP 456 Module 6 Section 14 Communication and Dissemination of The Findings HEP 456: Health Promotion Program ā¦
ECO203 Quiz Week 4
Question 1
The banking system can expand the total number of loans
only if all banks are national banks.
only if it has the consent of the Fed.
Correct!
as long as there are excess reserves in the system.
as long as it wants to.
Question 2
M1 includes all but which one of the following?
Correct!
bank CDs
coins
traveler’s checks
currency
checkable deposits
Question 3
If the Fed sells government bonds on the open market, which of the following will NOT occur?
the amount of investment spending will decrease.
Correct Answer
the interest rate will fall.
the yield on government bonds will increase.
the yield on corporate bonds will increase.
the money supply will contract.
Question 4
The most important monetary tool of the Federal Reserve System is
Correct!
open market operations.
loans to the public.
loans to banks.
changes in legal reserve requirements.
changes in the discount rate.
Question 5
The fact that money is legal tender increases its
portability.
divisibility.
Correct!
acceptability.
durability.ā
recognizability.
Question 6
Checkable deposits are
money, but a very small part of the supply.
bank paper money.
not stores of wealth.
Correct!
deposits at bank that are redeemed by writing checks.
not money.
Question 7
All but which one of the following are roles of the Fed?
check-clearer for banks
supervisor of banks
Correct!
banker to the public
controller of the money supply
lender of last resort
Question 8
In the classical model, the money supply affects the economy
through deficit spending.ā
along an AD curve.
Correct!
directly through spending changes.
by shifting the AS curve.
indirectly through the interest rate.
Question 9
The medium of exchange function of money refers to money as
a representation of a commodity such as gold.ā
a measure of value.
Correct!
a means of payment.
a common denominator.
a form of wealth.
Question 10
The lender of last resort function refers to
purchasing government bonds when no one else wishes to purchase them.
Correct!
preventing bank panics.
loaning money to the public
regulating banks.
controlling the money supply.
