Monetarism is the belief that _____.

$$$ can cause inflation and unemployment if not monitored.

Positive affects of inflation include:

stops unemployment, encourages spending money (lower risk)

Quantity Theory of Money: if money supply ____, then price will ___

Decrease, decrease (proportional)

Federal requirements are the ____ that determine interest on _____.

% of money that goes to the bank, legal reserves

Negative affects of inflation include_____

Rising prices, less purchasing power, money lacks value

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Monetary Policy

10 termsStudBud Administration7 plays

A #economics Quiz to introduce the basics of #monetary policy.

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Questions 10

Answers

1
A defining feature that determines interest rates is ____.
mr. alassandra
Credit.
Value of the dollar.
Fed. gov. Rulings
2
The Fractional reserves sytems holds back ____ to ensure ____or flows of money.
Easy money, Tight money
Deposits, Legal reserves
Inflation, monetary growth
Prime interest rates, interest rates
3
Monetarism is the belief that _____.
$$$ is the root of all unemployment, with/without regulation
Fed. gov rules over every aspect of the bank.
Money can be regulated with aggressive force.
$$$ can cause inflation and unemployment if not monitored.
4
Interest rates are the _____ rates that “ordinary” people pay due _____ credit.
Highest, low
Lightest, brightest
Tallest, shortest
Lowest, highest
5
Positive affects of inflation include:
Inflation
Raises cost of borrowing
Assists the failing bee population.
stops unemployment, encourages spending money (lower risk)
6
Quantity Theory of Money: if money supply ____, then price will ___
decrease, increase
Decrease, decrease (proportional)
No change at all.
Stay the same, decrease
7
The stock market crash is and example of _____ , due to the lack of physical money available.
Monetary growth
Quantity theory of money
purchasing power
Inflation
8
Federal requirements are the ____ that determine interest on _____.
% of money that goes to the bank, legal reserves
Inflation, growth.
fractional reserve system, MBR
Prime interest rates, interest rates.
9
Negative affects of inflation include_____
Prime rates are increased, credit drops all across the board
All bees are officially dead
lowers Cost of borrowing
Rising prices, less purchasing power, money lacks value
10
Prime rates are the___ rates that people want to Pay.
creditable
Lowest
Funniest
Easiest

Monetary Policy Flashcards | StudBud