Which of the following functions is NOT performed by any of the twelve regional Federal Reserve Banks? A) check clearing B) conducting economic research C) setting interest rates payable on time deposits D) issuing new currency ANSWER C
Date: September 10th, 2020
If an individual moves money from currency to a demand deposit account A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 stays the same. ANSWER C
Date: September 10th, 2020
A $5 million deposit outflow from a bank has the immediate effect of A) reducing deposits and reserves by $5 million. B) reducing deposits and loans by $5 million. C) reducing deposits and securities by $5 million. D) reducing deposits and capital by $5 million. ANSWER A
Date: September 10th, 2020
The falling phase of a business cycle measured by a decrease in real GDP is called: A) hyperinflation. B) expansion. C) recession. D) peak. ANSWER C
Date: September 10th, 2020
There is an inverse relationship between the price-cost margin and the level of competition in a particular industry. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The decrease in demand faced by McDonalds during 2001-2002 can be attributed to: A) decrease in consumer preference for high-fat content food. B) increase in lawsuits. C) increase in competitive pressures. D) all of the above. ANSWER D
Date: September 10th, 2020
The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the A) risk premium. B) term premium. C) tax premium. D) market premium. ANSWER B
Date: September 10th, 2020
The amount of money a firm pays to lease a building it uses for office space is called: A) the full opportunity cost of production. B) an explicit cost. C) a real cost of production. D) an implicit cost. ANSWER B
Date: September 10th, 2020
If an individual moves money from a money market deposit account to currency A) M1 increases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases. ANSWER A
Date: September 10th, 2020
Because two percent of the largest farms grow half of all of the grain in the United States, the grain industry is technically classified as an oligopoly. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
