119. When the foreign exchange value of the dollar is above its equilibrium rate
ID: 1210985 • Letter: 1
Question
119. When the foreign exchange value of the dollar is above its equilibrium rate, the U.S dollar has a tendency to A. Be revalued B. Be inflated C. Depreciate D. Be devalued E. Appreciate 121. Which of the following make up a bank's legal reserves? A. It's no personal time deposits plus it's deposit in the Fed B. It's transaction deposits plus it's deposit in the Fed C. It's transaction deposits plus it's nonpersonal time deposits D. It's vault cash plus it's deposit in the Fed E. It's vault cash plus it's transaction deposits122. Which of the following is NOT a function of the Fed? A. Lending funds to private businesses B. Regulating the money supply C. Providing currency D. Acting as a banker for the federal government E. Making loans to banks
125. The Fed's most important monetary function is to A. Hold reserve deposits of commercial banks B. Serve as the banker for the U.S government C. Aid in the check clearing process D. Regulate the money supply E. Supervise member banks
126. Investment spending rises as a result of a(n) A. Increase in the money supply B. Decrease in the money supply C. Decrease in aggregate demand D. Decrease in aggregate supply E. Increase in the demand for money
127. The lack of capital formation in developing countries is due in part to A. Excessive foreign aid B. High interest rates C. Government prohibitions on private ownership D. The fact that it is harder to forgo current consumption to be able to save E. High tax rates on private investment 119. When the foreign exchange value of the dollar is above its equilibrium rate, the U.S dollar has a tendency to A. Be revalued B. Be inflated C. Depreciate D. Be devalued E. Appreciate 121. Which of the following make up a bank's legal reserves? A. It's no personal time deposits plus it's deposit in the Fed B. It's transaction deposits plus it's deposit in the Fed C. It's transaction deposits plus it's nonpersonal time deposits D. It's vault cash plus it's deposit in the Fed E. It's vault cash plus it's transaction deposits
122. Which of the following is NOT a function of the Fed? A. Lending funds to private businesses B. Regulating the money supply C. Providing currency D. Acting as a banker for the federal government E. Making loans to banks
125. The Fed's most important monetary function is to A. Hold reserve deposits of commercial banks B. Serve as the banker for the U.S government C. Aid in the check clearing process D. Regulate the money supply E. Supervise member banks
126. Investment spending rises as a result of a(n) A. Increase in the money supply B. Decrease in the money supply C. Decrease in aggregate demand D. Decrease in aggregate supply E. Increase in the demand for money
127. The lack of capital formation in developing countries is due in part to A. Excessive foreign aid B. High interest rates C. Government prohibitions on private ownership D. The fact that it is harder to forgo current consumption to be able to save E. High tax rates on private investment 119. When the foreign exchange value of the dollar is above its equilibrium rate, the U.S dollar has a tendency to A. Be revalued B. Be inflated C. Depreciate D. Be devalued E. Appreciate 121. Which of the following make up a bank's legal reserves? A. It's no personal time deposits plus it's deposit in the Fed B. It's transaction deposits plus it's deposit in the Fed C. It's transaction deposits plus it's nonpersonal time deposits D. It's vault cash plus it's deposit in the Fed E. It's vault cash plus it's transaction deposits
122. Which of the following is NOT a function of the Fed? A. Lending funds to private businesses B. Regulating the money supply C. Providing currency D. Acting as a banker for the federal government E. Making loans to banks
125. The Fed's most important monetary function is to A. Hold reserve deposits of commercial banks B. Serve as the banker for the U.S government C. Aid in the check clearing process D. Regulate the money supply E. Supervise member banks
126. Investment spending rises as a result of a(n) A. Increase in the money supply B. Decrease in the money supply C. Decrease in aggregate demand D. Decrease in aggregate supply E. Increase in the demand for money
127. The lack of capital formation in developing countries is due in part to A. Excessive foreign aid B. High interest rates C. Government prohibitions on private ownership D. The fact that it is harder to forgo current consumption to be able to save E. High tax rates on private investment
Explanation / Answer
119. (E) Appreciate
121. (B) It's transaction deposits plus it's deposit in the Fed
122. (A) Lending funds to private businesses; The functions of Federal Reserve Bank consists of:
125. (D) Regulate the money supply
126. (A) Increase in the money supply
127. (D) The fact that it is harder to forgo current consumption to be able to save
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