New AP MACRO UNIT 4 EXAM REVIEW

The most loans this bank can still make is

Before 2008, the FEDs preferred monetary policy tool was

If the Federal Reserve is doing this, then in the economy has

Which of the following is using money as a medium of exchange?

To change the policy rate in this way, the FED must definitely

A share of ownership in a corporation that pays dividends and can be resold is a

Which type of policy is being shown?

Which part of the money supply includes cash, checking accounts, savings accounts, and CDs, but NOT bank reserves?

A bank wants a real interest rate of 5% & expected inflation is 3%, what nominal rate of interest will the bank charge?

What would cause this shift in the demand for money on this money market graph?

When a bank gets a short term loan from the FEDERAL RESERVE it pays the federal funds rate.

In the reserve market graph, the ___ puts a ceiling on the policy rate and the ___ creates a floor.

Banks create money when they:

To keep the supply of reserves in the Ample range, the FED would

If a person deposits $100 in a bank, this action immediately increases the money supply by $100.

All of the following could cause this shift EXCEPT

What could cause this shift in the Loanable Funds market?

Monetary policy always involves changes in ___ by the central bank.

If this bank makes the maximum possible loan still possible, what is the total increase in the MS?

The Policy Rate that is targeted by the Federal Reserve in monetary policy is the ___ (AKA Interbank Lending Rate)

The money multiplier is equal to ____ .

If interest rates increase, the price of previously purchased bonds will

The graph that is used to show long term savings and borrowing behavior in the financial system is the:

Which of these is an expansionary monetary policy if reserves are AMPLE?

The required reserve ratio in this banking system is