31 May Question 2 of 10 0.0/ 10.0 Points One of the essential functions that a bank performs is
Question
Quiz 4
Return to Assessment List
Part 1 of 1 – 70.0/ 100.0 Points
Question 1 of 10
10.0/ 10.0 Points The supply of money in the U.S. economy is determined primarily by
A.decisions made by the Federal Reserve and the U.S. Treasury.
B.the actions of the Federal Reserve and the banking system.
C.consumers and the banking system.
D.the demand for money in the economy.
Question 2 of 10
0.0/ 10.0 Points One of the essential functions that a bank performs is
A.purchasing government bonds.
B.creating deposits by lending required reserves.
C.transferring money from savers to lenders.
D.owning assets like real estate.
Question 3 of 10
10.0/ 10.0 Points At lower interest rates the
A.money supply is indeterminate.
B.money supply is lower.
C.quantity of money demanded is higher.
D.quantity of money demanded is lower.
Question 4 of 10
10.0/ 10.0 Points From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A.bond recall procedures.
B.open market purchases.
C.backflip bond investments.
D.voluntary redemption procedures
Question 5 of 10
10.0/ 10.0 Points Selling government bonds through open market operations allows the Federal Reserve to
A.decrease money in the treasury.
B.decrease the money supply in the private sector.
C.receive discounts on future sales.
D.receive a high rate of interest on the bonds.
Question 6 of 10
10.0/ 10.0 Points How can the Federal Reserve actually increase the money supply?
A.by delaying transfer of money among banks
B.by raising the discount rate
C.by printing more money
D.by purchasing more government bonds in the open market
Question 7 of 10
10.0/ 10.0 Points An increase in the discount rate
A.reduces the cost of reserves borrowed from the Fed.
B.signals the Fed’s desire to increase the money supply.
C.signals the Fed’s desire to lend increased reserves to banks.
D.increases the cost of reserves borrowed from the Fed.
Question 8 of 10
0.0/ 10.0 Points The Federal Reserve influences the level of interest rates in the short run by changing the
A.demand for money through open market operations.
B.demand for money through changes in reserve requirements.
C.supply of money through open market operations.
D.supply of money through changes in stock market operations.
Question 9 of 10
10.0/ 10.0 Points If the quantity of money demanded exceeds the quantity of money supplied, then the
A.interest rate stays the same.
B.interest rate will increase.
C.interest rate will decrease.
D.effect on the interest rate is indeterminate.
Question 10 of 10
0.0/ 10.0 Points If the Fed wished to decrease inflation, it could
A.increase the reserve requirement or conduct an open market sale.
B.increase the reserve requirement or conduct an open market purchase.
C.decrease the reserve requirement or conduct an open market sale.
D.decrease the reserve requirement or conduct an open market purchase.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.