Econ Chapter 15

Which of the following institutions determines the quantity of money in the economy as its most important task?

The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the:

Which of the following institutions oversees the safety and stability of the U.S. banking system?

Which of the following is a traditional tool used by the Fed during recessions?

Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the central bank?

What term is used to describe the interest rate charged by the central bank when it makes loans to commercial banks?

Which of the following is considered to be a relatively weak tool of monetary policy?

A central bank that wants to increase the quantity of money in the economy will:

A central bank that desires to reduce the quantity of money in the economy can:

The quantitative easing policies adopted by the Federal Reserve are usually thought of as:

Which of the following is described as an innovative and nontraditional method used by the Federal Reserve to expand the quantity of money and credit during the recent U.S. recession?

Central Bank policy requires Northern Bank to hold 10% of its deposits as reserves. Northern Bank policy prevents it from holding excess reserves. If the central bank purchases $30 million in bonds from Northern Bank what will be the result?

The central bank requires Southern to hold 10% of deposits as reserves. Southern Bank's policy prohibits it from holding excess reserves. If the central bank sells $25 million in bonds to Southern Bank which of the following will result?

Central bank policy requires all banks to hold 10% of deposits as reserves. Pacific Bank policy prevents it from holding excess reserves. Suppose banks cannot trade any of the bonds they already have. If the central bank decides to lower the reserve requirement to 9%, which of the following will result?

Atlantic Bank is required to hold 10% of deposits as reserves. If the central bank increases the discount rate, how would Atlantic Bank respond?

The Central Bank has raised its reserve requirements from 10% to 12%. If Southern Bank finds that it is not holding enough in reserves to meet the higher requirements, then it will likely:

When the central bank decides to increase the discount rate, the:

When the central bank decides it will sell bonds using open market operations:

When the central bank lowers the reserve requirement on deposits:

Which of the following events would cause interest rates to increase?

When the Federal Reserve announces that it is implementing a new interest rate policy, the ____________________ will be affected?

How are the specific interest rates for the lending and borrowing markets determined?

When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:

If a Central Bank decides it needs to decrease both the aggregate demand and the money supply, then it will:

When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:

When a Central Bank makes a decision that will cause an increase in both the money supply and aggregate demand, it is:

____________________________ will often cause monetary policy to be considered counterproductive because it makes it hard for the central bank to know when the policy will take effect?

When banks hold excess reserves because they don't see good lending opportunities:

If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the economy to return to its potential GDP?

The central bank uses a ____________________ monetary policy to offset business related economic contractions and expansions?

Regardless of the outcome in the long run, ______________________ always has the effect of stimulating the economy in the short run.

What is the name given to the macroeconomic equation MV = PQ?

According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the following is most likely to result?

According to the basic quantity equation of money, if price and output fall while velocity increases, then:

If nominal GDP is 1800 and the money supply is 450, then what is velocity?

If GDP is 3600 and the money supply is 300, what is the velocity?

In good economic times, a surge in lending exaggerates the episode of economic growth. Which of the following adaptations of monetary policy can moderate these exaggerated effects?

If you were to survey central bankers from around the world and ask them what they believe the primary task of monetary policy should be, what would the most popular answer likely be?

If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will only:

If nominal GDP is 2700 and the money supply is 900, what is velocity?

If GDP is 2400 and the money supply is 600, then what is the velocity?

If GDP is 1800 and the money supply is 300, then what is the velocity?

43. If the economy is at equilibrium as shown in the diagram above, then a contractionary monetary policy will

If the economy is at equilibrium as shown in the diagram above, then an expansionary monetary policy will:

The diagram above refers to a private closed economy. In this instance, the equilibrium GDP is: