Which of the following is NOT true about banks?
Multiple Choice
Banks are tightly regulated by state and federal governments.
Banks are required to keep a certain amount of cash reserves.
Banks are an example of a financial intermediary.
Banks are sellers, not buyers, in the market for money.
"A"
Banks are not regulated by the Federal and the state government, but by the FDIC and the FEd. the answer is "A". the office of the comptroller also regulate the banks in the US.
Which of the following is NOT true about banks? Multiple Choice Banks are tightly regulated by...
8 Which of the following can people not get at their commercial banks? Multiple Choice eBook Print money market deposit accounts time deposits certificates of deposit money market mutual fund:s Which part of the Federal Reserve System holds reserves of the member banks? Multiple Choice eBook Print The Federal Open Market Committee The Board of Governors The Federal Advisory Committee The 12 Federal Reserve Banks
Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves to buy government bonds from the Federal Reserve. Commercial banks sell government bonds to the Federal Reserve. Commercial banks loan out excess reserves O A check clears from Bank A to Bank B. < Prey 5 of 35
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government spending on new military jet fighters an increase in consumption because of improved consumer confidence an increase in personal income taxes for families with children an increase in the purchase of office buildings by foreign investors If consumers spend 98 cents out of every extra dollar received, the Multiple Choice marginal propensity to consume is 98. marginal propensity to save is 1.02. marginal propensity...
Which of the following statements concerning perfect competition is NOT true? 8 Multiple Choice 8 00:27:00 There are many buyers and many sellers, There is free entry and exit into the market. The sellers have to take the market price. O O O The products are slightly differentiated.
Which of the following is true about a strict Currency board system? Multiple Choice ) The currency board system enhances the ability of the government to print money Ο The government lacks the ability to set interest rates C ) A currency board system is govemed by the market forces of demand and supply C ) A currency boud cannot issue additional domestic notes and coins despite the presence of foreign exchange reserves to back Ο A currency board system...
(15) According to the political economy theory of endogenous money, which of the following are true (select one or more options): – a. The Fed determines the money supply. b. The Fed sets the rate of interest. C. Money demand determines the rate of interest. d. Banks create money by making new loans and later finding the reserves they need. e. Banks can only create money out of excess reserves. f. The money supply is determined by the demand for...
Which of the following is NOT a characteristic of a market in equilibrium? Multiple Choice Sellers can sell as many units as they want at the equilibrium price. Neither buyers nor sellers want the price to change. There s There is neither excess supply nor excess demand. Buyers can buy as many units as they want at the equilibrium price.
Which of the following would reduce the money supply? Multiple Choice An open market sale of government bonds by the Fed. Commercial banks use excess reserves to buy government bonds from the public. Taasisi An open market purchase of government bonds by the Fed. A check clears from Bank A to Bank B.
Which of the following is not true? Banks and other financial intermediaries help make the market for loanable funds fluid O and ease transactions by helping match one person's savings with another person's investment. The market for loanable funds works like any other competitive market with many buyers O and many sellers. The market for loanable funds is comprised of those who want to save the suppliers of funds) and those who want to borrow (the demanders of funds) Where...
Which of the following statements is true about return on equity (ROE)? Multiple Choice It measures the return on common stockholders’ investment in the assets of the firm. The value of the firm’s ROE is affected by net income. The value of the firm’s ROE is affected by the amount of financial leverage or debt that the firm uses. All of these choices are correct.