Econ Test
a bank Panic occurs when
many banks experience runs at the same time
any item that is regularly accepted by buyers and sellers and used to settle economic transactions is
money
assuming there no leakages out of the banking system and money multiplier is equal to 5 means that
each additional dollar of reserves create $5 deposit
on the balance sheet of a bank
loans are the most important asset
which of these facts is true about the creation of the Federal Reserve System the Fed
the Fed was created in 1913
which of body of the Federal Reserve System sets the majority of the u.s. monetary policy
the Federal Open Market Committee
Board of Governors is in charge of
the Federal Reserve in each of the seven members is also a member of the fomc
who is the chairperson of the Federal Open Market Committee
the chairperson of the Board of Governors
most Bankers have a
Bankers bank which is also known as a nation Central Bank
most Nations have a Bankers bank which is also known as
Central Bank
the Federal Reserve is the
Central Bank of the United States
the sum of all currency in the hands of the public + demand deposits and other checkable deposits plus traveler's checks is the official definition of
M1
which of these is the broadest definition of money supply
M2
the Central Bank functions as a lender-of-last-resort if a bank is running short of money
a central bank also conducts a nation's monetary policy which is any monetary action taken to impact the price level economic growth on employment
money also functions as
a medium of exchange since buyers and sellers exchange goods and services for money
A bank's balance is an
an accounting statement that shows A banks sources and uses of funds
the money multiplier for the United States is
between 2 and 3
open market desk
carries out the monetary policy directives of the fomc Via buying and selling US Treasury Securities on the open market
the Federal Reserve is set up to be
independent of the political system
credit cards are not
part of the money supply
when we say that money serves as a unit of account we mean that
prices are quoted in terms of money
when we say that one of the functions of the FED is to be a lender-of-last-resort we mean that the Fed
provides funds to troubled banks that cannot find any source of funds
the money multiplier shows the
relationship between the two changes and deposits that will result from a given change in reserves
the Federal Open Market Committee fomc
set the majority of the u.s. monetary policy