Assume the Federal Reserve increases the required reserve ratio from 10 to 20 percent and reserves are $80 billion. Then the change in the money supply will be a. $80 billion. b. $20 billion. c. $400 billion. d. $800 billion. e. none of the above ANSWER C
Date: September 10th, 2020
Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was captured by its customers, not the railroad industrialists. Other researchers like Gabriel Kolko (1965) highlight the involvement of railroad industrialists in capturing this government agency to serve a cartel role, too. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Fears that the Munn v Illinois (1877) doctrine would result in excessive government control over businesses were not realized, for it actually had the effect of retarding government regulation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If many banks fail, this is likely to cause a/an a. increase in the currency-to-deposit ratio. b. increase in the reserves-to-deposit ratio. c. a fall in the currency-to-deposit and reserves-to-deposit ratios. d. both a and b. e. none of the above. ANSWER D
Date: September 10th, 2020
Roads during the 1800s proved to be a preferred transportation alternative to railroads and thus competed successfully for profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Railroads attracted funds from foreign investors. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume that the Federal Reserve has purchased a $1,000 security from an individual, the required reserve ratio is 20 percent, and that individual deposits the proceeds in his bank. What is the increase in excess reserves for this bank? a. $200 b. $1,000 c. $1,200 d. $800 e. $2,000 ANSWER D
Date: September 10th, 2020
Internal improvements are important to a developing and growing economy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Sherman Antitrust Act of 1890 was followed almost immediately in the 1890s by the largest merger movement ever known by Americans up to that point in U.S. history. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the United States there were legal reserve requirements on time and savings deposits during most of the post-World War II period. Therefore, the money multiplier for the M1 definition was a. smaller when time and saving deposits increased. b. smaller when time and saving deposits were assumed to be fixed. c. larger when time […]
Date: September 10th, 2020
