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