Before I submit can someone please help me verify i am correct on the below. If

Question

Before I submit can someone please help me verify i am correct on the below. If i am not can you please help steer me towards what i should be looking for. thanks for your help (BELOW ARE MY ANSWERS)

Question 1

Money can be many things, but it is not:

Liquid

A financial liability

A financial asset

Illiquid

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Question 2

A financial asset is liquid:

If it can be carried easily from one place to another

Only if it takes the form of cash

If is is held by the public and earning interest

If it can be readily exchanged for another asset or good

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Question 3

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

Has the sole right to accept deposits and make loans

Determines what assets will back a currency

Sets borrowing and lennding in a country

Has the sole right to issue currency

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Question 4

The value and functionality of money are determined by the:

General acceptability to other people

Regulations defined by the Fed

Lack of credibility in other financial assets

Credibility in other financial assets

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Question 5

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

Medium of exchange

Unit of account

Standard of economic well-being

Store of wealth

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Question 6

During periods of high inflation, money becomes:

More useful as a medium of exchange

Less useful as a unit of account

More useful as a store of value

More useful as a unit of account

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Question 7

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?

Store of real assets

Unit of account

Store of wealth

Medium of exchange

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Question 8

M1 includes which of the following?

Time deposits

Money market mutual funds

Checking account deposits

Gold certificates

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Question 9

Bank reserves are:

Real assets deposited at banks

Loans issued by banks deposited into checking accounts

Checks held by depositors

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

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Question 10

When a bank makes a loan, the money supply:

Decreases

Does not increase

Increases

May increase or decrease depending on how the loan is used

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Question 11

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

People will hold less cash

Banks will extend more loans

People will hold more cash

Banks will extend fewer loans

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Question 12

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

4.0

20.0

5.0

25.0

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Question 13

Who determines U.S. monetary policy?

The Internal Revenue Service

The president

Congress

The Federal Reserve

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Question 14

Monetary policy affects:

Only output

Both inflation and output

Only inflation

Neither inflation nor output

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Question 15

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

AD curve out to the right

AD curve in to the left

SAS curve up

SAS curve down

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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

Immigration policy

Fiscal policy

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Question 17

If prices are inflexible, monetary policy:

Doesn't affect output or inflation

Affects output but not inflation

Affects inflation but not output

Affects both inflation and output

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Question 18

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

Decrease by 1 percent

Decrease by 7 percent

Increase by 1 percent

Increase by 7 percent

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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:

B

D

C

A

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Question 20

An effect of an expansionary monetary policy is to:

Raise interest rates

Lower interest rates

Shift the aggregate demand curve to the left

Reduce investment spending

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Question 21

How many regional banks are in the Federal Reserve System?

6

15

8

12

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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:

National Federal Reserve Bank

Federal Open Market Committee

Federal Advisory Council

Federal Depository Insurance Corporation

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Question 23

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

5 percent

15 percent

2 percent

10 percent

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Question 24

When the Fed increases the reserve requirement, it:

Contracts the money supply because banks have less to lend

Contracts the money supply because banks have more to lend

Expands the money supply because banks have less to lend

Expands the money supply because banks have more to lend

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Question 25

The discount rate is the interest rate:

The interest rate commercial banks charge one another for overnight loans

The Fed charges on loans to individuals

Commercial banks charge their largest customers

The Fed charges on loans to commercial banks

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Question 26

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

Sell bonds

Increase the discount rate

Increase the required reserve ratio

Decrease the discount rate

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Question 27

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

The financial sector is the biggest sector

Most people work in the financial sector

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

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

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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

Mortgage-backed securities and tulips

Housing and mortgage-backed securities

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Question 29

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

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

Providing banks liquidity to meet their obligations

Buying Treasury bills directly from the public

Providing banks with Treasury bills for free

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Question 30

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

Answer

Providing banks with liquidity

Loosening its regulations of bank

Giving banks assets

Conducting standard monetary policy

i have

1=D

2=D

3=D

4=A

5=C

6=B

7=C

8=C

9=B

10=A

11=D

12=A

13=D

14=B

15=B

16=A

17=D

18=A

19=D

20=B

21=D

22=B

23=D

24=A

25=D

26=D

27=D

28=D

29=B

30=A

A.

Liquid

B.

A financial liability

C.

A financial asset

D.

Illiquid

Explanation / Answer

i have verified and found all the answers were correct...excellent work.. i will crosscheck again using internet and get back thanks

1=D

2=D

3=D

4=A

5=C

6=B

7=C

8=C

9=B

10=A

11=D

12=A

13=D

14=B

15=B

16=A

17=D

18=A

19=D

20=B

21=D

22=B

23=D

24=A

25=D

26=D

27=D

28=D

29=B

30=A

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