It is recommended that you save your response as you complete each question. Question 1 The actual change in the money supply equals Question 1 options:the change in reserves times the reserve requirement ratio.the change in excess reserves times the money multiplier.the actual change in excess reserves.the change in required reserves times the money multiplier.Save Question 2 The required reserve ratio equals 10 percent and all banks initially have zero excess reserves. The Fed buys $1 million in U.S. government securities. The most the money supply can increase is Question 2 options:$1 million.$10 million.$8 million.$4 million.Save Question 3 The more people decide to hold currency, the Question 3 options:smaller the actual money multiplier.greater control the Fed has over the money supply.larger the actual money multiplier.larger the money supply.Save Question 4 The discount rate is the Question 4 options:interest rate on short-term U.S. government securities.interest rate banks charge their best customers.interest rate the Fed charges on loans made to depository institutions.interest rate the Fed charges to the largest and most secure manufacturing concerns in the country.Save Question 5 The most precise way the Fed has to control the money is Question 5 options:by adjusting the discount rate.open market operations.by encouraging excess reserves.by adjusting the reserve requirement.Save Question 6 According to the above figure, a shortage is shown between which two points? Question 6 options:C and BA and BE and FA and ESave Question 7 A decrease in demand and a decrease in supply will lead to a Question 7 options:decrease in quantity but the effect on price is indeterminate.decrease in price but the effect on quantity is indeterminate.decrease in price and an increase in quantity.decrease in price and a decrease in quantity.Save Question 8 If the current price of a market basket of goods is $850 and the base year price for the same market basket is $500, what is the value of the price index? Question 8 options:100170140120Save Question 9 The only way that a society can produce outside the production possibilities curve is Question 9 options:by producing efficiently.through economic growth.by obeying the Law of Increasing Relative Cost.to use the concept of opportunity cost.Save
It is recommended that you save your response as you complete each question. Question 1 The actual change in the money supply equals Question 1 options:the change in reserves times the reserve requirement ratio.the change in excess reserves times the money multiplier.the actual change in excess reserves.the change in
Question 6 options:C and BA and BE and FA and ESave Question 7 A decrease in demand and a decrease in supply will lead to a Question 7 options:decrease in quantity but the effect on price is indeterminate.decrease in price but the effect on quantity is indeterminate.decrease in price and an increase in quantity.decrease in price and a decrease in quantity.Save Question 8 If the current price of a market basket of goods is $850 and the base year price for the same market basket is $500, what is the value of the price index? Question 8 options:100170140120Save Question 9 The only way that a society can produce outside the
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