問題一覧
1
Speculators pose the greatest risk for an economy when…
they are highly leveraged.
2
Which one of the following is not an example of commodity money?
U.S. dollars
3
Which of these does NOT describe the Japanese economy of recent decades?
The Japanese banking crisis of the late 1980s triggered serious inflation.
4
Which one of the following is NOT likely to be a result of deflation?
Wealth will be redistributed from creditors to debtors.
5
According to Keynes,
d. Both a and b.
6
In the textbook presentation of ‘How Banks Create Money,’ which of these is NOT true?
When banks hold a greater portion of excess reserves they increase the money supply.
7
Which of the following does not describe hyperinflation?
The purchasing power of money increases dramatically during hyperinflation.
8
Which one of the following forms of money is not included in M2?
Share of stock
9
According to Minsky,
stability is destabilizing because economic actors move towards higher risk-taking activities during periods of economic booms.
10
Which one of the following is not included in M2?
Large certificates of deposits
11
Which one of the following is NOT included in the M2 measure of money?
The value of credit card balances
12
Which of these is NOT a bank type described in the textbook?
All of these statements are bank types described in the textbook.
13
According the efficient market hypothesis,
Only a and c.
14
When the Fed makes an open market purchase, it immediately increases…
the monetary base.
15
Suppose that in an economy real GDP is $100, the price level index is 4, and the money supply is $50. What would the velocity of money be in this economy?
8
16
Suppose the demand for federal funds increases, but the Fed’s target level remains unchanged. Which one of the following statements is MOST LIKELY to be TRUE?
The Federal Reserve would act to keep the interest rate unchanged, but the amount of federal funds lent would increase.
17
What is the equation for the money multiplier?
= Money supply / monetary base
18
Which one of the following statements best describes the chain of events that causes expansionary monetary policy to increase GDP?
Expansionary monetary policy lowers interest rates, which increases investment, which increases aggregate expenditure, which increases GDP
19
The quantity theory of money assumes that the money supply is directly related to what variable?
The price level
20
Monetary policy impacts GDP mainly through its effect on…
investment.
21
Which one of the following statements is FALSE?
The Federal Reserve does not publish its target for the federal funds rate to avoid speculation.
22
What is the main policy recommendation of monetarists?
The Fed should keep the growth rate of the money supply constant.
23
How does the Federal Reserve affect the supply of money using open market operations?
The Fed buys government bonds from banks, which increases the banks’ reserves with the Fed and allows them to make new loans.
24
When the Fed purchases government bonds, that tends to ___ the federal funds rate and ___ the prime rate.
decrease; decrease
25
Which one of the following statements best summarizes the Federal Reserve’s monetary policy over the years 2000-2006?
The Federal Reserve initially lowered the federal funds rate to avoid a recession but then increased the federal funds rate to avoid inflation.