economics quiz VI

A debt instrument (bond) that probably does not have a federal income tax liability would be

• corporate bond

• treasury bond

• municipal bond

• none of these

All but one applies to Monetary Policy

• increasing interest rate

• decreasing reserve requirements

• decreasing bond buying

• decreasing taxes

All but one was used by the Fed to lower the interest rate

• ZIRP

• QE

• Operation Twist

• ARRA

Fiat money (currency) in the U.S. today

• is backed by gold

• is printed by the Federal Reserve

• has no intrinsic value

• none of these

If the reserve requirement for a member bank was 30%, the bank of deposit could lend out

• 70% of any new deposits

• 80% of any new deposits

• 90% of any new deposits

• none of these

In periods of inflation the Fed wants the money supply to

• rise

• fall

• not change

• none of these

One advantage of ETF's is that they act like a mutual fund buyer but are

• less than the cost as a mutual fund

• more than the cost as a mutual fund

• the same as the cost as a mutual fund

• none of these

QE was criticized because it

• financed government deficits

• fueled stock market growth

• wealth and income disparity worsened

• all of these

Stock certificates would most likely be issued by a

• sole proprietorship

• partnership

• corporation

• none of these

The advantage money has over bartering is that it is

• unit of account

• medium of exchange

• store of value

• none of these