Mr. Whitwam - AP Macroeconomics Unit 4

Unexpected Inflation benefits whom?

The Federal Reserve is controlled by

If nominal interest rate is 7%, and expected inflation is 3%, what is the real interest rate?

If the public’s desire to save increases, what will the impact be on the banking system?

Which of these is the most liquid form of money?

Which of the following monetary policies will expand Aggregate Demand?

Which of the following is included in M2, but not in M1?

How should the Fed balance an increase in government spending?

When the Fed buys bonds on the open market, which will decrease in the short run?

Which is the most effective Monetary Policy?

All of the following are tools of the Fed except

What is the equation for the money multiplier?

Assume a customer withdraws money that the bank does not have in their reserves, the bank can

When the gov't increases spending, what may occur?

Which combination of Monetary and Fiscal Policy will counteract a severe recession?

Selling Bonds on the open market will most likely lead to which of the following

Which is included in the Current Account in a Banks Balance Sheet?

200$ = Dem. Deposits , 80$ = Reserves , R.Req. = 20% , what is max bank can increase loans?

The main difference between stocks and bonds is

What is initial change in money supply when a customer deposits 10$ into a bank & RRR = 10%?

Which of the following is NOT included in the M3 money supply?

Which of the following occurs when the Fed reduces the reserve requirement?

Which of the following is not a characteristic of commodity money?

If economy is at FE,  & there is an increase in MS, quantity theory of money predicts increase 

The federal funds rate is the interest rate that

Fiat Money

Which graph has real interest rates on the y axis

Commercial banks can create money by

Which of the following is true about the Federal Reserve System?

All of the following are functions of money except

When banks extend loans, they expand the supply of money in the US because the US has

With 100$ in demand deposits, 20$ in reserves, and no excess reserves, what is the RRR?

“Crowding Out” occurs when government issues

If interest rates increase, bond prices will