Nhóm 5_Kinh tế vĩ mô

Fiat money is

• a type of money with intrinsic value.

• any asset used as the medium of exchange.

• a type of money set by government decree.

• any asset used as the unit of account.

The money stock includes all of the following EXCEPT

• metal coins.

• lines of credit accessible with credit cards.

• bank balances accessible with debit cards.

• paper currency.

Which of the following is NOT true about the Federal Reserve?

• It regulates the banking system.

• It was established by the U.S. Constitution.

• It conducts open-market operations.

• It lends to banks.

If the Fed wants to increase the money supply, it can

• raise income tax rates.

• reduce income tax rates.

• buy bonds in open-market operations.

• d. sell bonds in open-market operations.

Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $100 to reserves, the money supply ________, but if the bank lends out some of the $100, the money supply ________

• is unchanged; increases

• increases; increases by less

• increases; increases even more

• decreases; decreases by less

If the reserve ratio is ¼ and the central bank increases the quantity of reserves in the banking system by $120, the money supply increases by 

• $90

• $150

• $160

• $480

A bank has capital of $200 and a leverage ratio of 5. If the value of the bank's assets declines by 10 percent, then its capital will be reduced to 

• $100

• $150

• $180

• $185

Which of the following actions by the Fed would tend to increase the money supply?

• an open-market sale of government bonds

• a decrease in reserve requirements

• an increase in the interest rate paid on reserves

• an increase in the discount rate on Fed lending

If the Fed raises the interest rate it pays on reserves, it will _______ the money supply by increasing ________.

• decrease; the money multiplier

• increase; the money multiplier 

• increase; excess reserves

• decrease; excess reserves

In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold ________ currency or if banks choose to hold ________ excess reserves.

• more; more

• more; less

• less; more

• less; less