The Federal Deposit Insurance Corporation insures A. the federal funds market. B. the deposits held in...
The Federal Deposit Insurance Corporation insures
A.
the federal funds market.
B.
the deposits held in the Fed.
C.
banks against lawsuits.
D.
the deposits held in member banks.
2)
In a barter system, there are
A.
financial institutions to facilitate all exchanges.
B.
money and goods exchanged for each other.
C.
goods traded directly for other goods and services.
D.
many different units of money.
3)
The price of bonds and the interest rate are
A.
related, but we are not sure how.
B.
positively related.
C.
inversely related.
D.
unrelated.
4)
Which of the following fiscal policy actions would be appropriate if the economy is experiencing an recessionary gap?
A.
an increase in interest rates
B.
a decrease in the money supply
C.
a decrease in taxes
D.
a decrease in government spending
5)
Asymmetric information is a situation in which
A.
information possessed by one party in a transaction is also known by another party.
B.
the government has information that it chooses to pass along to private firms.
C.
private firms have information that they choose to pass along to the government.
D.
information possessed by one party in a transaction is not known by another party.
Homework Answers
Add Answer to:
The Federal Deposit Insurance Corporation insures A. the federal funds market. B. the deposits held in...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A)...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
1. In the federal funds market, _____.? a. ?banks make loans to the Fed b. ?the...
1. In the federal funds market, _____.? a. ?banks make loans to the Fed b. ?the Fed makes short-term loans to private borrowers c. ?the Fed makes long-term loans to commercial banks d. ?banks make short-term loans to other banks e. ?banks make long-term loans to other banks 2. The table below shows the balance sheet of Countybank. If the required reserve ratio is 10 percent, this bank alone can now increase its lending by _____.? ? Table 14.2 ?...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings de...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings deposits 2. If you deposit $100 of currency into a demand deposit at a bank, this action by itself A)does not change the money supply. B)increases the money supply. C)decreases the money supply. D)has an indeterminate effect on the money supply. 3. The manager of the bank where you work tells you that your...
1. The interest rate in the federal funds market: a. is an interest rate that is...
1. The interest rate in the federal funds market: a. is an interest rate that is largely unaffected by the policies of the Fed. b. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. c. is determined by the imposition of price controls imposed by the Fed. d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. 2. If there is a...
1.)The ____________ is the sum of currency and reserve deposits, the monetary _________ of the central...
1.)The ____________ is the sum of currency and reserve deposits, the monetary _________ of the central bank A.)money stock; assets B.)money stock; liabilities C.)monetary base; liabilities D.)monetary base; assets 2.)Time deposits are ______ liquid than savings deposits and typically earn a _________ interest rate than savings deposits. A.)less; higher B.)more; higher C.)more; lower D.)less; lower 3.)If banks must hold $2 in reserves for each $10 in deposits, and the public decides to hold $3 in currency for each $10 in...
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve....
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve. B) is headed by the president of the New York Federal Reserve Bank. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy 50) 51) When the quantity of money demanded is greater than the quantity of moneyupplied, people 1) bonds and the interest rate A) buy; falls B) sell; falls...
7. The SIPC: A. guarantees investors against any loss related to an investment account held at...
7. The SIPC: A. guarantees investors against any loss related to an investment account held at a brokerage firm. B. guarantees cash balances held in brokerage accounts up to $500,000. C. is an agency of the federal government. D. protects private brokerage firms from bankruptcy. E. protects investors from missing assets when a brokerage firm closes.
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury...
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury notes. (c) Treasury bonds. (d) Treasury strips. 17. The most influential participant(s) in the U.S. money market (a) is the Federal Reserve. (b) is the U.S. Treasury Department, (c) are the large money center banks. (d) are the investment banks that underwrite securities 18. Federal funds are (a) usually overnight investments. (b) borrowed by banks that have a deficit of reserves. (c) lent by...
1) Bank 1 has deposits of $4141 and reserves of $455. If the required reserve ratio...
1) Bank 1 has deposits of $4141 and reserves of $455. If the required reserve ratio is 10%, what is the value of the bank's excess reserves? Enter a whole number with no dollar sign. Round to the nearest whole number. 2) In a fractional reserve banking system a. banks hold a fraction of deposits as reserves. b. the reserve ratio measures the percentage of deposits available to be lent out. c. banks hold a fraction of reserves as deposits....
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings deposits 2. If you deposit $100 of currency into a demand deposit at a bank, this action by itself A)does not change the money supply. B)increases the money supply. C)decreases the money supply. D)has an indeterminate effect on the money supply. 3. The manager of the bank where you work tells you that your...
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve. B) is headed by the president of the New York Federal Reserve Bank. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy 50) 51) When the quantity of money demanded is greater than the quantity of moneyupplied, people 1) bonds and the interest rate A) buy; falls B) sell; falls...
16. Money market instruments issued by the U.S. Treasury are called (a) Treasury bills. (b) Treasury notes. (c) Treasury bonds. (d) Treasury strips. 17. The most influential participant(s) in the U.S. money market (a) is the Federal Reserve. (b) is the U.S. Treasury Department, (c) are the large money center banks. (d) are the investment banks that underwrite securities 18. Federal funds are (a) usually overnight investments. (b) borrowed by banks that have a deficit of reserves. (c) lent by...
Most questions answered within 3 hours.
-
By applying what you know about Grignard reagents and the
mechanism by which benzoic acid is...
asked 8 minutes ago -
For thermoplastics, explain the effects of increasing of each of
the following properties on a polymer’s...
asked 10 minutes ago -
Make a menu for the user to use in python 3 that can search and
replace...
asked 41 seconds ago -
1) An aqueous solution contains 0.280 M
NaHS and 0.128 M
H2S.
The pH of this...
asked 15 minutes ago -
Situational Leadership
is based on interplay of all of the following except:
The amount of guidance...
asked 16 minutes ago -
Consider the following problem: given n positive integers,
separate them into two groups such that adding...
asked 20 minutes ago -
Briefly discuss the following statements:
2.1 A partner never has the right to claim compensation for...
asked 22 minutes ago -
If a bond has an annual probability of default of 6%, 10% and
12% in years...
asked 31 minutes ago -
Let X be normally distributed with mean μ = 10 and standard
deviation σ = 6....
asked 36 minutes ago -
You're examining some of the tiny printing on one of the newer
twenty-dollar bills. A 1.5...
asked 40 minutes ago -
Discuss several common sources of secondary data coming from
government sources.
asked 43 minutes ago -
This is a basic java program where you convert units using only
loops, control statements and...
asked 43 minutes ago