All of the following are means of payment in the United States except: Select on
ID: 1106760 • Letter: A
Question
All of the following are means of payment in the United States except:
Select one:
A. Federal Reserve notes.
B. savings deposits.
C. stock options.
D. checkable deposits.
The Federal Funds rate is the interest rate charged on a(n):
Select one:
A. loan from the Federal Reserve to a bank.
B. overnight loan from one bank to another.
C low interest loan from the Federal Reserve to a bank.
Suppose the reserve ratio is 20% for all banks. If the Fed increases bank reserves by $200, then the money supply will:
Select one:
A. increase by $1,000.
B. decrease by $1,000.
C. increase by $400.
In the United States, the largest category of means of payment is:
Select one:
A. currency.
B. checkable deposits.
C. savings accounts.
D. All of the answers are correct
Which of the following assets would you classify as being most liquid?
Select one:
A. a home
B. demand deposits
C. gold bullion
Bank notes are issued by:
Select one:
A. private banks and the Federal Reserve.
B. the Federal Reserve only.
C. investment houses and banks.
D. the leading financial institutions of the U.S.
The Fed loaned money to JP Morgan and AIG because it was concerned about:
Select one:
A. systemic risk, should these banks fail.
B. moral hazard on the part of these banks.
C. the liquidity of these banks.
D. the market demands being placed on these banks.
When the Federal Reserve buys bonds, the demand curve for bonds:
Select one:
A. shifts outward.
B. sometimes shifts inward and sometimes shifts outward.
C. shifts inward.
D. does not shift.
Explanation / Answer
1.
C. stock options.
the above is the answer as there is no money involved directly,its an right to buy.
2.
overnight loan from one bank to another.
the above is the answer and also called as inter-bank rate
3.
then the money supply will=(1/5%)*100=1000 increase
so answer is increase by 1000
4.
A. currency.
the above is the answer
5.
demand deposits
the above is the answer
6.
B. the Federal Reserve only
the above is the answer
7.
A. systemic risk, should these banks fail.
the above is the answer
8.
A. shifts outward.
the above are the answers
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.