Zoran, a Croatian citizen, only works in the United States. The value added to production from his employment is: A) included in Croatian GDP. B) included only in U.S. GDP. C) included only in U.S. GNP. D) not included in either U.S. GDP or U.S. GNP. ANSWER B
Date: September 10th, 2020
An increase in the discount rate will result in: A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an […]
Date: September 10th, 2020
Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations? A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in […]
Date: September 10th, 2020
If real GDP grows from $10 trillion in 2002 to $10.5 trillion in 2003, the growth rate for real GDP is A) 5%. B) 10%. C) 50%. D) 0.5%. ANSWER A
Date: September 10th, 2020
When yield curves are downward sloping A) long-term interest rates are above short-term interest rates. B) short-term interest rates are above long-term interest rates. C) short-term interest rates are about the same as long-term interest rates. D) medium-term interest rates are above both short-term and long-term interest rates. ANSWER B
Date: September 10th, 2020
When it became known in 1997 that the Thai government had insufficient foreign exchange reserves to maintain the exchange rate, how did currency speculators respond? What policy did the IMF suggest? What will be an ideal response? ANSWER Currency speculators began massive selling of the Thai currency, baht, which in turn depreciated further. The […]
Date: September 10th, 2020
Monetary aggregates are A) measures of the money supply reported by the Federal Reserve. B) measures of the wealth of individuals. C) never redefined since “money” never changes. D) reported by the Treasury Department annually. ANSWER A
Date: September 10th, 2020
Recent financial innovation makes the Federal Reserve’s job of conducting monetary policy A) easier, since the Fed now knows what to consider money. B) more difficult, since the Fed now knows what to consider money. C) easier, since the Fed no longer knows what to consider money. D) more difficult, since the Fed no longer […]
Date: September 10th, 2020
The amount of output produced with an additional unit of variable input is referred to as: A) total product. B) average variable product. C) marginal product. D) average fixed product. ANSWER C
Date: September 10th, 2020
One suggested method of reducing excessive risk-taking by SIFIs is to require them to hold ________ capital when credit is expanding rapidly and ________ capital when credit is contracting. A) less; more B) more; no C) more; less D) less; no ANSWER C
Date: September 10th, 2020
