If the reserve requirement decreases from 20% to 25% and the currency to deposit ratio increases from 10% to 15% then a. the money multiplier and the money supply rises. b. the money multiplier and the money supply stays the same. c. the money multiplier and the money supply falls. d. the money multiplier rose […]
Date: September 10th, 2020
The Gallatin Plan (1808) was not passed because some individuals questioned its constitutionality. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the U.S., the most recognized entrepreneurs during industrialization were (a) clearly monopolists. (b) robber barons, who solely realized the concentrated wealth accumulated nation-wide. (c) individuals whose market power clearly originated from within the government. (d) key individuals who were famous or wealthy. ANSWER (d)
Date: September 10th, 2020
During the Great Depression, the money supply fell 28%. During that same time, the monetary base ____ and the currency-to-deposit ratio and reserve-to-deposit ratios both _____. a. rose; fell b. rose; rose c. fell; rose d. fell; fell ANSWER B
Date: September 10th, 2020
Most canals were economic failures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
As entrepreneurs find new market niches and help specific industries grow, other industries will (a) grow proportionately. (b) grow disproportionately. (c) fail. (d) grow disproportionately and fail. ANSWER (d)
Date: September 10th, 2020
The money multiplier is the ratio of a. bank reserves to bank deposits. b. the change in the money supply to the change in the monetary base. c. the money supply to the monetary base. d. bank deposits to bank reserves. e. both b and c. ANSWER E
Date: September 10th, 2020
An open market purchase immediately impacts the banking system balance sheet by a. increasing required reserves. b. increasing deposits. c. increasing the money multiplier. d. increasing excess reserves. e. none of the above. ANSWER D
Date: September 10th, 2020
The percentage of the population that lived in urban areas rose from approximately 5% in 1790 to 40% in 1860. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which sector consists of services traded for food, shelter, housing or other services? (a) tertiary (b) secondary (c) primary (d) international ANSWER (a)
Date: September 10th, 2020
