ch 15 hw

increasethe ON RRP

If the Fed wants to discourage nonbank lending, it will Multiple Choicedecrease the IORB.increase the IORB.decrease the ON RRP.increase the ON RRP.

borrows

In a reverse repo transaction, the Fed _________blank money. Multiple Choice loans borrows prints new donates

rate the fed uses to communicate their monetary policy stance

The policy rate is the interest Multiple Choicerate at which the central banks lend to the U.S. Treasury.rate that is also known as the discount rate.rate at which banks lend to the public.rate the Fed uses to communicate their monetary policy stance.

changing the amount of government spending

The tools that the Fed can use to alter the money supply are open market operations and all of the following, except Multiple Choicechanging the amount of government spending.changing the amount of lending into the money market by changing the ON RRP.changing the IORB rate to change the amount of currency held in reserves by banks.changing the federal funds target range.

ON RRP

The interest rate that the Federal Reserve pays nonbanks for overnight loans of currency is the Multiple Choicediscount rate.effective federal funds rate.IORB.ON RRP.

AD curve shift right

Other things equal, a lower real interest rate will cause: Multiple Choicethe AS curve to shift left.the AD curve to shift right.the AS curve to shift right.the AD curve to shift left.

long-term ; expansionary

The Fed was designed to be insulated from political pressure so that it might take a _________blank perspective and be immune from lobbying and special interest groups. Without protection from political pressure, the Fed may be influenced to take an overly _________blank monetary policy to keep politicians and special interest groups happy. multiple choicelong-term; expansionaryshort-term; expansionarylong-term; contractionaryshort-term; contractionary

open market

The Fed's purchases and sales of government securities is called Multiple Choice the federal funds market. open-market operations money market transactions. a term auction facility.

federal reserve system

The conduct of monetary policy in the United States is the main responsibility of the Multiple Choice U.S. Treasury. Federal Reserve System. Office of Management and Budget. Bureau of Economic Analysis.

the equilibrium intrest rate determined in the federal funds market

The effective federal funds rate refers to Multiple Choicethe equilibrium interest rate determined in the federal funds market.the interest rate the Fed charges banks on emergency loans.one of the three administered rates set by the Fed.the interest rate the Fed pays nonbanks on overnight reverse repos.

price-level stability, full employment and economic growth

The fundamental objective of monetary policy is to assist the economy in achieving Multiple Choice a rapid pace of economic growth. a money supply that is based on the gold standard. price-level stability, full employment, and economic growth. a balanced-budget consistent with full employment.

rate the fed pays banks for any money the deposit on an overnight basis

The interest on reserve balances is the interest Multiple Choicerate at which the central banks lend to the U.S. Treasury.rate banks pay the Fed to keep their money overnight.rate at which banks lend to the public.rate the Fed pays banks for any money they deposit on an overnight basis.

discount rate

The interest rate at which the Federal Reserve Banks lend to banks is called the Multiple Choice policy rate. short-term rate. discount rate. federal funds rate.

discount rate

The interest rate that the Fed charges banks for loans to them is called the Multiple Choice discount rate. interest on reserve balances. federal funds rate. money market rate.

federal funds rate

The interest rate that the Fed uses as the policy rate is called the Multiple Choiceadministered rate.ON RRP rate.IORB rate.federal funds rate.

federal funds rate

Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the Multiple Choice employment rate. federal funds rate. discount rate. consumer price index.

central bank

U.S. monetary policy is conducted by Multiple Choice the president and Congress. the central bank. each individual state. the banks and thrifts.

ordinary open-market operations are done to lower short-term interest rates; quantitative easing is used to lower long-term interest rates

Which of the following is a difference between "quantitative easing" and ordinary open-market operations? Multiple Choice There is no difference between the two. Ordinary open-market operations are done to lower short-term interest rates; quantitative easing is used to lower long-term interest rates. Quantitative easing is done in order to lower interest rates; open-market operations are merely intended to change bond prices. Open-market operations involve forward commitment; quantitative easing is intentionally vague to maintain flexibility.

changes in banking laws

Which of the following is not a tool of monetary policy? Multiple Choice open-market operations changes in banking laws changes in one or more of the three administered interest rates the Fed communicating to the public how it intends to manage monetary policy

inflation rate

Which of the following is not a tool of monetary policy? Multiple Choicethe inflation ratethe federal funds ratethe overnight reverse repo ratequantitative easing