Econ ch 34
When the federal reserve acts to ease money and credit in the economy, then the aggregate
Demand curve will shift to the right
Which one of the following is to be a tool of monetary?
Discount rate
The conduct of monetary policy in the United States is the main responsibility of the:
Federal reserve
The use of monetary policy to address a problem of recession or inflation is
Hindered by a lag in the time it takes for the policy to have an effect
A contraction of the money supply
Increases the interest rate and decreases aggregate demand
The asset demand for money and the rate of interest are:
Inversely related
Who is the current chairman of the federal reserve board of governors?
Janet yellen
Bond prices and interest rates are
Negatively related
The most frequently used monetary device for achieving price stability is:
Open-market operations
The most frequently used tool of monetary policy is:
Open-market operations
Which one of the following is a tool for monetary policy?
Open-market operations
Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?
Open-market operations
Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?
Reserve ratio
Which one of the following is a tool of monetary policy?
Reserve ratio
The economy is experiencing inflation and the federal reserve decides to pursue a restrictive money policy. Which actions by the fed would be most consistent with this policy?
Selling government securities
The fundamental objective of monetary policy is to assist the economy in achieving
A full-employment, noninflationary level of total output
In the consolidation balance sheet of the federal reserve banks, loans to commercial banks are:
An asset of the federal reserve banks and a liability for commercial banks
If federal reserve officials attempt to pull the economy out of a recession when the price level is relatively stable, the policies they would most likely use would be to:
Buy government securities and decrease the discount rate
Which statement is true?
The prime interest rate will be higher than the federal funds rate.
When the interest rate falls the
Total amount of money demanded for increases
A consumer holds money to meet spending needs. This would be an example of the
Transactions demand for money