Unit IV Macro Quiz

How do banks create money?

One of the strengths of monetary policy relative to fiscal policy is that monetary policy

Purchasing common stock by writing a check best exemplifies money serving as a:

The biggest deterrent from a bank panic is?

Excess reserves in the banking system will increase if

a RR of 20% would translate to a money multiplier of

In the United States monetary policy is the responsibility of the :

Stagflation is the result of:

When economists say that money serves as a medium of exchange, they mean that it is:

A Keynesian economist believes that

Maximum Deposit Expansion Multiplier

Money multiplier formula

In the long run, aggregate supply is

To fight a recession the Fed might consider

The AS curve shifts rightward if

Money functions as:

Which of the following is included in the calculation of GDP

if the RR is 10% & a new customer deposits $500, what is the maximum amount of money created

Which of the following would likely slow a nation's economic growth

other things equal, an excessive increase in the money supply will:

If the CPI rises by 2% & your nominal income rises by 8%, your real income has

The Federal reserve is considered quasi-public because

A contractionary Monetary Policy

The tax multiplier increases in magnitude when:

Who would Bernie sanders most likely appoint as his Chief Economic Advisor?

Cash in people's pockets and wallets are:

A reserve requirement of 10% means a bank must have $1,000 of RR if its checkable deposits are:

A Contractionary supply shock most likely results in

Which of the following is a tool of monetary policy

Which function of money best defines $1.25 as the price of a 20 oz. bottle of pop?

Which of the following is likely to shift the long run AS curve to the right

A RR of 50% would translate to a money multiplier of:

What is the most likely to affect economic growth negatively

An increase in the consumer price index is commonly referred to as

Largest component of M1 is

If the government collects more money in net taxes than it spends, there would be

Current Chair of the Federal reserve

If average consumer income rises & we observe that the demand for pork increases, pork must be

If $1000 is deposited into a checking account & excess reserves rises by $700, the RR must be

The spending multiplier is often smaller than predicted because of

The best example of a negative supply shock to the economy would be

Excess reserves refer to

If the Fed sold gov't bonds in the OMO, we would anticipate:

Which of the following lessens the impact of expansionary fiscal policy

Which of the following events most likely increases real GDP

Which of the following is included in the U.S GDP?

When economists say that money serves as a store of value, they mean that it is:

Which of the following is not a way that the Fed can affect the money supply?

the discount rate is the interest:

Open Market Operations refer to:

If you place a part of your summer earnings in a savings account, you are using money as a:

Which of the following is a tool used by the Fed to increase the money supply

to fight inflation the Fed might consider

Which of the following is an accurate statement of the money supply in the U.S?

Which of the following is not a scarce economic resource

When the price of pears increases, we expect the following:

Which of the following is an example of an expansionary supply shock?

Fiat currency:

The fractional reserve banking system's ability to create money is lessened if

The three main tools of monetary policy are