An economy with only the household and firm sectors is called: A) a mixed economy. B) a private economy. C) a command economy. D) none of the above. ANSWER B
Date: September 10th, 2020
If your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017, to have the same real income, your nominal income in 2017 must be A) $50,000. B) $75,000. C) $90,000. D) $100,000. ANSWER D
Date: September 10th, 2020
The legislation that made all depository institutions regardless of Federal Reserve membership subject to the reserve requirements established by the Fed is called the: A) Glass-Steagall Act. B) McFadden Act. C) Monetary Control Act of 1980. D) none of the above ANSWER C
Date: September 10th, 2020
A decrease in the reserve requirement would: A) decrease excess reserves and reflect an expansionary monetary policy. B) decrease excess reserves and reflect a contractionary monetary policy. C) increase excess reserves and reflect an expansionary monetary policy. D) increase excess reserves and reflect a contractionary monetary policy. ANSWER C
Date: September 10th, 2020
Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks is that A) they provide convenient receipts for purchases. B) they can never be stolen. C) they are more widely accepted than currency. D) the funds from a deposited check are available for use immediately. […]
Date: September 10th, 2020
Compared to an electronic payments system, a payments system based on checks has the major drawback that A) checks are less costly to process. B) checks take longer to process, meaning that it may take several days before the depositor can get her cash. C) fraud may be more difficult to commit when paper receipts […]
Date: September 10th, 2020
Secondary reserves are so called because A) they can be converted into cash with low transactions costs. B) they are not easily converted into cash, and are, therefore, of secondary importance to banking firms. C) 50% of these assets count toward meeting required reserves. D) they rank second to bank vault cash in importance of […]
Date: September 10th, 2020
Three factors explain the risk structure of interest rates A) liquidity, default risk, and the income tax treatment of a security. B) maturity, default risk, and the income tax treatment of a security. C) maturity, liquidity, and the income tax treatment of a security. D) maturity, default risk, and the liquidity of a security. […]
Date: September 10th, 2020
As the level of competition in an industry increases, the price-cost margin approaches: A) 0. B) 1. C) 10. D) infinity. ANSWER A
Date: September 10th, 2020
A sterilized central bank intervention does not affect the domestic money supply. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
