Please help on the below questions. Want to compare to what I have. A financial

Question

Please help on the below questions. Want to compare to what I have.

A financial asset

A financial liability

Liquid

Illiquid

Question 2

A financial asset is liquid:

If it can be readily exchanged for another asset or good

If is is held by the public and earning interest

Only if it takes the form of cash

If it can be carried easily from one place to another

Question 3

The U.S. central bank is a financial institution that:

Has the sole right to accept deposits and make loans

Has the sole right to issue currency

Sets borrowing and lennding in a country

Determines what assets will back a currency

Question 4

The value and functionality of money are determined by the:

General acceptability to other people

Credibility in other financial assets

Regulations defined by the Fed

Lack of credibility in other financial assets

Question 5

Which of the following is not one of the functions of money?

Store of wealth

Standard of economic well-being

Unit of account

Medium of exchange

0.3333 points

During periods of high inflation, money becomes:

More useful as a store of value

Less useful as a unit of account

More useful as a unit of account

More useful as a medium of exchange

0.3333 points

When you deposit $200 in your savings account with the objective to buy in the near future a video game that is about to be offered in thh market, then the $200 is serving which function?

Unit of account

Store of wealth

Store of real assets

Medium of exchange

0.3333 points

M1 includes which of the following?

Gold certificates

Checking account deposits

Time deposits

Money market mutual funds

0.3333 points

Bank reserves are:

Cash and deposits a bank keeps on hand or at the central bank

Real assets deposited at banks

Checks held by depositors

Loans issued by banks deposited into checking accounts

Question 10

When a bank makes a loan, the money supply:

May increase or decrease depending on how the loan is used

Increases

Does not increase

Decreases

Question 11

As the reserve ratio goes up, less money will be created because:

People will hold less cash

Banks will extend more loans

Banks will extend fewer loans

People will hold more cash

Question 12

If the reserve ratio is 0.25, the money multiplier is:

4.0

20.0

5.0

25.0

Question 13

Who determines U.S. monetary policy?

The Internal Revenue Service

The Federal Reserve

Congress

The president

Question 14

Monetary policy affects:

Neither inflation nor output

Both inflation and output

Only inflation

Only output

Question 15

In the short run if the Fed undertakes expansionary monetary policy, the effect will be to shift the:

AD curve in to the left

SAS curve down

AD curve out to the right

SAS curve up

Question 16

Monetary policy is one of the two main macroeconomic tools governments use to control the aggregate economy, the other being:

Foreign policy

Trade policy

Fiscal policy

Immigration policy

Question 17

If prices are inflexible, monetary policy:

Affects inflation but not output

Affects output but not inflation

Affects both inflation and output

Doesn't affect output or inflation

Question 18

If nominal income increases by 3 percent and real income increases by 4 percent, the price level must:

Increase by 7 percent

Decrease by 7 percent

Decrease by 1 percent

Increase by 1 percent

Question 19

Refer to the graph shown. Suppose the economy is initially at O but then the Fed adopts an expansionary monetary policy. The immediate effect of this policy will be to move the economy to:

D

B

C

A

Question 20

An effect of an expansionary monetary policy is to:

Reduce investment spending

Shift the aggregate demand curve to the left

Raise interest rates

Lower interest rates

Question 21

How many regional banks are in the Federal Reserve System?

6

12

15

8

Question 22

The group that is comprised of five presidents of Fed regional banks and seven Fed governors that gathers around a table to discuss whether to increase interest rates is the:

Federal Depository Insurance Corporation

Federal Open Market Committee

National Federal Reserve Bank

Federal Advisory Council

Question 23

The reserve requirement for large banks on customer deposits in checking accounts is around:

10 percent

15 percent

5 percent

2 percent

Question 24

When the Fed increases the reserve requirement, it:

Contracts the money supply because banks have more to lend

Expands the money supply because banks have more to lend

Expands the money supply because banks have less to lend

Contracts the money supply because banks have less to lend

Question 25

The discount rate is the interest rate:

The Fed charges on loans to commercial banks

The Fed charges on loans to individuals

Commercial banks charge their largest customers

The interest rate commercial banks charge one another for overnight loans

Question 26

To increase the nation's money supply, the Fed can:

Increase the required reserve ratio

Increase the discount rate

Decrease the discount rate

Sell bonds

Question 27

Why are financial-sector crises scarier than collapses in other sectors of the economy?

Most people work in the financial sector

If the financial sector fails, it can bring the whole economy down with it

The financial sector is the biggest sector

Financial-sector crises happen more often than collapses in other sectors

Question 28

In which two markets did a bubble form that led to a financial crisis in 2008?

Housing and automobiles

South Sea Company and tulips

Housing and mortgage-backed securities

Mortgage-backed securities and tulips

Question 29

When a central bank is acting as a lender of last resort it is:

Providing banks liquidity to meet their obligations

Buying Treasury bills directly from the public

Providing banks with Treasury bills for free

Buying long-term Treasury bonds and selling short-term Treasury notes

Question 30

When the Fed loaned to banks using bank's long-run assets such as mortgages as collateral, it was:

Giving banks assets

Loosening its regulations of bank

Providing banks with liquidity

Conducting standard monetary policy

A.

A financial asset

B.

A financial liability

C.

Liquid

D.

Illiquid

Explanation / Answer

1-d

2-a

3-d

4-b

5-b

6-a

7-c

8-b

9-d

10-a

11-c

12-d

13-a

14-b

15-a

16-b

17-d

18-b

19-a

20-b

21-a

22-c

23-b

24-d

25-a

26-c

27-b

28-a

29-c

30-d

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