Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Macroeconomics Principles and Policy Study Set 1

Business

Quiz 13 :

Monetary Policy Conventional and Unconventional

Quiz 13 :

Monetary Policy Conventional and Unconventional

search
arrow
The Federal Reserve System can be described as a bank for bankers.
Free
True False
Answer:

Answer:

True

arrow
The Fed's founders viewed the Fed as a means of maintaining the money supply during economic contractions and as a lender of last resort.
Free
True False
Answer:

Answer:

True

arrow
The opportunity cost of holding excess reserves will be lower at an 8 percent federal funds rate in comparison to a 10 percent federal funds rate.
Free
True False
Answer:

Answer:

True

arrow
When someone asks how much money you made this year,they are using the term "money" correctly.
True False
Answer:
arrow
The United States was among the first of the modern industrial nations to establish a central banking system.
True False
Answer:
arrow
Open market operations affect the supply of reserves.
True False
Answer:
arrow
Unconventional monetary policies include massive lending to banks and open-market purchases of assets other than Treasury bills.
True False
Answer:
arrow
Money is a concept that has a certain value at a point in time.
True False
Answer:
arrow
The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities.
True False
Answer:
arrow
An increase in the average price level will lead to a decrease in the demand for reserves.
True False
Answer:
arrow
The central bank in the United States is known as the Federal Reserve System.
True False
Answer:
arrow
Recessions are typically associated with increases on interest rates on risky securities coupled with increases on interest rates on Treasury securities.
True False
Answer:
arrow
The Federal Reserve's principal tool in the manipulation of aggregate demand is the personal income tax.
True False
Answer:
arrow
Money and income are used interchangeably by noneconomists but mean different things.
True False
Answer:
arrow
The demand for reserves depends on income and the price level.
True False
Answer:
arrow
As the federal funds rate rises,the banks' opportunity cost of holding excess reserves falls.
True False
Answer:
arrow
The Federal Reserve Bank was modeled after the European Central Bank.
True False
Answer:
arrow
When you use the word income,you mean a value that must be qualified by a length of time.
True False
Answer:
arrow
The Federal Reserve Open Market Committee includes the seven members of the Board of Governors,presidents of five of the twelve district banks,and the Secretary of the Treasury.
True False
Answer:
arrow
Monetary policy is the system of actions taken by the Fed to influence the money supply.
True False
Answer:
Showing 1 - 20 of 204