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WorksheetsECON EXAM 4
Total questions: 164
Worksheet time: 1hrs 23mins
Name
Class
Date
1.
The 3 goals of macroeconomics
a)
Too much money chasing too few goods.
b)
It will encourage other interest rates to rise, and result in less spending and more saving by households and businesses
c)
economic growth , price stability, full employment
d)
twelve federal reserve banks
2.
long run trend or potential GDP
a)
3 percent
b)
A good used as money that also has a value independent of its use as money
c)
53%
d)
employed + Unemployed
3.
aggregate means
a)
Money is useful because it can provide a standard of value in borrowing and lending
b)
money
c)
total amount
d)
monetary
4.
GDP =
a)
aggregate supply
b)
Price stability; maximum
c)
out of the labor force
d)
$28,084 or less
5.
why the continued growth ?
a)
overprinting by governing authorities to pay for debts
b)
U.S. is very good at producing stuff and has continued to get better
c)
lower unemployment rates
d)
federal funds rate
6.
we have higher worker productivity that measures
a)
overprinting by governing authorities to pay for debts
b)
you did not work for pay AND actively looked for work in last 4 weeks
c)
53%
d)
output per unit of input
7.
determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework
a)
The Fed uses it to steer the federal funds rate into the FOMC’s target range.
b)
determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework
c)
work at all for pay during survey week
d)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
8.
U.S. has a ? percentage literacy rate
a)
FED (FOMC)
b)
99
c)
Interest on reserve balances rate
d)
responsible for a key tool- sets the range for the federal funds rate (FFR)
9.
some districts have only a 50 to ?
a)
employed
b)
monetary manipulate money supply to change interest rates while fiscal policy manipulate government spending and taxes
c)
natural unemployment rate
d)
60 graduation rate
10.
? of these over 25 y/o have a high school degree
a)
85%
b)
commercial banks and “thrift” or saving institutions
c)
decentralized
d)
The economy has experienced 5% inflation; average prices are 5% higher.
11.
quality, capital, and technology
a)
declining participation rate
b)
Banks should not be willing to accept a lower rate for their funds.
c)
tools, equipment, buildings, ability, skills, creativity to innovate and develop sophisticated production methods
d)
the ability to earn profits, high wages, and own property
12.
new technologies are the single most ?
a)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
b)
0 % to 1 %
c)
important source of productivity and improvement
d)
A sustained increase in the average price level of goods and services.
13.
powerful incentives in market economies are
a)
It will encourage other interest rates to fall, and result in more spending and less saving by households and businesses.
b)
employed + Unemployed
c)
99
d)
the ability to earn profits, high wages, and own property
14.
Real GDP growth percentage rate for 2023 is
a)
money
b)
Electrum
c)
3.5 %
d)
2.5%
15.
Real GDP growth percentage rate is between ? for 2024 is
a)
from banks with excess funds
b)
2007 - 2009
c)
between 2.5 and 2.8 %
d)
total amount
16.
How is price stability measured
a)
Lydia
b)
total amount
c)
U.S. is very good at producing stuff and has continued to get better
d)
with inflation rate
17.
inflation rate percent increase from one year to next in the
a)
Women have had lower rates of unemployment than men.
b)
from banks with excess funds
c)
you did not work for pay AND actively looked for work in last 4 weeks
d)
average prices of goods and services in the typical market for an average consumer
18.
consumer rate index (CPI):
a)
you did not work for pay AND actively looked for work in last 4 weeks
b)
most commonly used measure of inflation rate
c)
Electrum
d)
between 2.5 and 2.8 %
19.
comfort level of inflation for economists
a)
2% inflation
b)
Frictional, Structural, and Cyclical
c)
only has use as a medium of exchange, store of value, and unit of account
d)
is a bead made from a quahog clam shell.
20.
Current FED Chair is
a)
Price stability; maximum
b)
medium of exchange , standard of value , store value
c)
monetary
d)
Jerome Powell
21.
What percentages are close to deflation
a)
deficits
b)
congress and president
c)
The Fed raises the interest on reserves balances rate, and arbitrage ensures the federal funds rate moves up
d)
0 % to 1 %
22.
Unemployment that occurs when people transfer from job to job, or when new graduates enter the labor force is known as:
a)
frictional unemployment
b)
twelve federal reserve banks
c)
3.5 %
d)
$68,703
23.
The unemployment rate is determined by:
a)
medium of exchange
b)
money supply (certificates of deposits (CDS)
c)
dividing the number of unemployed by the labor force
d)
cows
24.
When the types of jobs available do not match the types of workers seeking jobs, a skills mismatch occurs that can result in ______________ unemployment.
a)
money supply (certificates of deposits (CDS)
b)
average prices of goods and services in the typical market for an average consumer
c)
acceptable,relatively scarce,divisible,portable,durable
d)
structural
25.
During the 2007-2009 recession, workers experiencing more than 27 weeks of unemployment made up about what percentage of the unemployed?
a)
easily converted into currency and checkable deposits
b)
monetary
c)
3 percent
d)
45%
26.
People who have a job, but are not working as much as they would like, are classified as:
a)
underemployed
b)
Structural
c)
narrow definition of the money supply
d)
Real Rate
27.
The three main types of unemployment are:
a)
frictional, cyclical, and structural
b)
those unemployed during a recession
c)
between 2.5 and 2.8 %
d)
Real Rate
28.
The employment to population ratio measures:
a)
the number of people working, divided by the population.
b)
They thought because it was pretty, like gold in other places, it would be a good form of money.
c)
M1= currency + Checkable deposits ( demand deposits)
d)
M1 and M2
29.
The type of unemployment that is typical when aggregate demand falls, such as in recessions, is called:
a)
narrow definition of the money supply
b)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
c)
those entering the labor force or changing jobs
d)
cyclical unemployment.
30.
After 1980, what change occurred in the unemployment rates of men and women during recessions?
a)
Women have had lower rates of unemployment than men.
b)
frictional, cyclical, and structural
c)
commercial banks and “thrift” or saving institutions
d)
The economy has experienced 5% inflation; average prices are 5% higher.
31.
Todd lost his job, but when he searched for a new one, he discovered that he no longer had the skills necessary to find work in his chosen field. What type of unemployment is Todd experiencing?
a)
Structural
b)
7 members from board of governors and 5 district FED Bank presidents
c)
economic growth , price stability, full employment
d)
3.8%
32.
Lizzy is currently 17 years old, and is looking for a summer job. She has filled out two applications in the past week and is searching online for more opportunities. Lizzy is:
a)
Unemployed
b)
twelve federal reserve banks
c)
3 percent
d)
Interest on reserve balances rate
33.
Emily is between careers. She currently works hard all day raising her children. She intends to go back to work when her youngest child starts school next fall. Emily is:
a)
it has value outside of its use as a medium of exchange.
b)
out of the labor force
c)
Frictional, Structural, and Cyclical
d)
60 graduation rate
34.
Tyrone recently graduated from college and has just begun looking for a job. What type of unemployment is Tyrone experiencing?
a)
8
b)
Frictional
c)
Interest on reserve balances
d)
2007 - 2009
35.
The unemployment rate is found by dividing the number of people unemployed by ________________ and multiplying by 100 to turn the decimal into a percentage.
a)
the number of people working, divided by the population.
b)
To maintain an inflation rate of about 2%.
c)
the number of people in the labor force
d)
Money serves as a medium of exchange when sellers are willing to accept it in exchange for goods and services
36.
Maria was laid off when her company was purchased by another business. She looked for work for nearly a year, but gave up looking just over a month ago. She hopes to begin her job search again when things look more promising. Maria is:
a)
85%
b)
Interest on reserve balances rate
c)
A discouraged worker who is out of the labor force.
d)
those without marketable skills or a mismatch between skills and opening
37.
Jorge is looking for a new job after finishing his college degree. He is currently working part time to pay the bills, but is also applying for jobs that match his career plans. Jorge is:
a)
to stimulate weakening or recessionary economy
b)
out of the labor force
c)
employed
d)
average prices of goods and services in the typical market for an average consumer
38.
When money is used to price goods and services, it is acting as a(n):
a)
2% inflation
b)
unit of account
c)
the number of people working, divided by the population.
d)
you did not work for pay AND actively looked for work in last 4 weeks
39.
When money is used to purchase goods and services and circulates in our economy, it is acting as a(n):
a)
medium of exchange
b)
It will encourage other interest rates to fall, and result in more spending and less saving by households and businesses.
c)
those without marketable skills or a mismatch between skills and opening
d)
a short term electronic payment market
40.
Commodity money has intrinsic value. This means:
a)
the federal reserve system
b)
99
c)
our money is fiat money
d)
it has value outside of its use as a medium of exchange.
41.
According to many economists, what was one of the earliest forms of money to be used as a medium of exchange?
a)
hold deposits of commercial banks,assist in check clearing process ( payment process)
b)
cows
c)
likes marry/ live with likes- matches of two college educated people
d)
privately owned but operated in the publics interest who
42.
Where did the first coins emerge?
a)
Lydia
b)
Structural
c)
most commonly used measure of inflation rate
d)
the amounts in our bank accounts change without our physically handling dollars
43.
Wampum:
a)
is a bead made from a quahog clam shell.
b)
the ability to earn profits, high wages, and own property
c)
Federal funds rate
d)
53%
44.
What metal was used to mint the first coins?
a)
The increase in competition for funds in the federal funds market will pull the federal funds rate higher.
b)
from banks with excess funds
c)
Electrum
d)
deficits
45.
The great benefit of a fiat money:
a)
the federal reserve system
b)
Money allows people to easily store value if you do not use all your dollars to buy goods and services today you can hold the rest to use in the future
c)
president with congressional approval
d)
is its efficiency to serve as a medium of exchange, especially since much of it is electronic money
46.
Central banks sell:
a)
It will encourage other interest rates to rise, and result in less spending and more saving by households and businesses
b)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
c)
trust that they will maintain the purchasing power of money
d)
the FOMC adjusts the target range, the fed adjusts the interest on reserves balances rate, and arbitrage moves the federal funds rate into the target range
47.
Most central banks in the world today:
a)
Structural
b)
medium of exchange
c)
are given certain independence from the government
d)
commercial banks and “thrift” or saving institutions
48.
According to Mike Bryan, what is one of the greatest risks associated with fiat money?
a)
overprinting by governing authorities to pay for debts
b)
deficits
c)
it was so large that it often wouldn't physically change hands, but people knew who held it and what it was worth
d)
you did not work for pay AND actively looked for work in last 4 weeks
49.
Fiat money:
a)
only has use as a medium of exchange, store of value, and unit of account
b)
M2
c)
lower unemployment rates
d)
By tracking the prices paid for a market basket of consumer goods and services over time.
50.
is divisible, recognizable, portable, and acceptable
a)
aggregate supply
b)
structural
c)
employed
d)
is divisible, recognizable, portable, and acceptable
51.
How are our bank accounts like the stone at the bottom of the ocean?
a)
those without marketable skills or a mismatch between skills and opening
b)
Interest on reserve balances rate
c)
the amounts in our bank accounts change without our physically handling dollars
d)
3 percent
52.
What made this money become abstract?
a)
tools, equipment, buildings, ability, skills, creativity to innovate and develop sophisticated production methods
b)
privately owned but operated in the publics interest who
c)
monetary
d)
it was so large that it often wouldn't physically change hands, but people knew who held it and what it was worth
53.
What function of money did the people of Yap recognize they needed?
a)
money that had a store of value
b)
0 % to 1 %
c)
are given certain independence from the government
d)
important source of productivity and improvement
54.
Why was money made from limestone on Yap?
a)
They thought because it was pretty, like gold in other places, it would be a good form of money.
b)
A discouraged worker who is out of the labor force.
c)
The Fed uses it to steer the federal funds rate into the FOMC’s target range.
d)
Frictional, Structural, and Cyclical
55.
What was this stone money used for?
a)
Infrequent occurrences like a dowry
b)
It is determined in the federal funds market
c)
provide banks with the same service banks provide their customers
d)
A sustained increase in the average price level of goods and services.
56.
The Federal Reserve is composed of the
a)
On average, a dollar buys 2 percent fewer goods and services than it did the year before.
b)
twelve federal reserve banks
c)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
d)
the amounts in our bank accounts change without our physically handling dollars
57.
The Federal Reserve System is an example of a __________________ central bank.
a)
3.5 %
b)
decentralized
c)
Maximum employment and price stability
d)
12
58.
Each Reserve Bank has _____ members on its Board of Directors.
a)
7
b)
rate is a national over all figure
c)
our money is fiat money
d)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
59.
The Federal Open Market Committee (FOMC) makes decisions on how ____________ policy should be managed.
a)
out of the labor force
b)
53%
c)
the FOMC adjusts the target range, the fed adjusts the interest on reserves balances rate, and arbitrage moves the federal funds rate into the target range
d)
monetary
60.
The Federal Reserve System has ____ regional Reserve Banks spread across the United States.
a)
president with congressional approval
b)
By tracking the prices paid for a market basket of consumer goods and services over time.
c)
12
d)
Expansionary/accommodative
61.
What does it mean if the CPI rises from 100 to 105 the next year?
a)
decrease government spending,increase taxes
b)
The economy has experienced 5% inflation; average prices are 5% higher.
c)
3 percent
d)
Too much money chasing too few goods.
62.
When there is _____________ __________, businesses and consumers can spend and invest with confidence. As they spend and invest with confidence, more goods and services are produced and more workers are hired, which moves the economy toward ___________ employment.
a)
determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework
b)
Price stability; maximum
c)
privately owned but operated in the publics interest who
d)
Money is useful because it can provide a standard of value in borrowing and lending
63.
The Federal Reserve's goal of price stability means that the Fed tries:
a)
To maintain an inflation rate of about 2%.
b)
3.5 %
c)
14 years
d)
only has use as a medium of exchange, store of value, and unit of account
64.
What is inflation?
a)
Frictional
b)
tools, equipment, buildings, ability, skills, creativity to innovate and develop sophisticated production methods
c)
A sustained increase in the average price level of goods and services.
d)
output per unit of input
65.
What does a 2 percent annual inflation rate mean?
a)
banks are owned by the commercial banks within the bank district
b)
acceptability, relatively scarce, legal tender
c)
currency P
d)
On average, a dollar buys 2 percent fewer goods and services than it did the year before.
66.
At its root, what causes inflation?
a)
economic growth , price stability, full employment
b)
provide banks with the same service banks provide their customers
c)
Too much money chasing too few goods.
d)
employed + Unemployed
67.
How does the Consumer Price Index (CPI) measure inflation?
a)
3 percent
b)
By tracking the prices paid for a market basket of consumer goods and services over time.
c)
unit of account
d)
neither employed nor in education or training
68.
How does a lower federal funds rate transmit to achieving the dual mandate?
a)
cows
b)
is its efficiency to serve as a medium of exchange, especially since much of it is electronic money
c)
M2
d)
It will encourage other interest rates to fall, and result in more spending and less saving by households and businesses.
69.
To conduct monetary policy, the FOMC sets a target range for which important rate?
a)
Federal funds rate
b)
A discouraged worker who is out of the labor force.
c)
banks are owned by the commercial banks within the bank district
d)
the federal reserve system
70.
How many regularly scheduled FOMC meetings are schedule per year?
a)
8
b)
Too much money chasing too few goods.
c)
overprinting by governing authorities to pay for debts
d)
M1 and M2
71.
What is the FOMC's target for the inflation rate?
a)
decentralized
b)
dividing the number of unemployed by the labor force
c)
U.S. is very good at producing stuff and has continued to get better
d)
Average 2 percent over time
72.
What two main goals has Congress given the Federal Reserve System?
a)
the ability to earn profits, high wages, and own property
b)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
c)
Maximum employment and price stability
d)
The increase in competition for funds in the federal funds market will pull the federal funds rate higher.
73.
How does a higher federal funds rate transmit to achieving the dual mandate?
a)
Money allows people to easily store value if you do not use all your dollars to buy goods and services today you can hold the rest to use in the future
b)
total amount
c)
deficits
d)
It will encourage other interest rates to rise, and result in less spending and more saving by households and businesses
74.
How can the FOMC adjust policy if it thinks the economy is overheating, with inflation rising above its price stability target?
a)
most commonly used measure of inflation rate
b)
Raise the federal funds rate target range
c)
A sustained increase in the average price level of goods and services.
d)
3.5 %
75.
How long is a typical federal funds market loan between banks?
a)
medium of exchange , standard of value , store value
b)
Average 2 percent over time
c)
3 percent
d)
overnight
76.
What function does interest on reserve balances serve besides an opportunity for banks to earn interest?
a)
congress and president
b)
federal funds rate
c)
budget surplus
d)
The Fed uses it to steer the federal funds rate into the FOMC’s target range.
77.
How is the federal funds rate determined?
a)
overnight
b)
It is determined in the federal funds market
c)
is a bead made from a quahog clam shell.
d)
trust that they will maintain the purchasing power of money
78.
When banks deposit funds at their Federal Reserve Bank, what interest rate do they earn?
a)
dividing the number of unemployed by the labor force
b)
Interest on reserve balances rate
c)
overnight
d)
Money serves as a medium of exchange when sellers are willing to accept it in exchange for goods and services
79.
When the interest on reserve balances rate is higher than the federal funds rate, how will arbitrage pull the two rates together?
a)
3.5 %
b)
privately owned but operated in the publics interest who
c)
decentralized
d)
The increase in competition for funds in the federal funds market will pull the federal funds rate higher.
80.
How is the interest on reserve balances rate a reservation rate?
a)
currency P
b)
Banks should not be willing to accept a lower rate for their funds.
c)
Unemployed
81.
When the interest on reserve balances rate is higher than the federal funds rate, how will banks respond?
a)
our money is fiat money
b)
The economy has experienced 5% inflation; average prices are 5% higher.
c)
Banks will borrow in the federal funds market and deposit funds at their Federal Reserve Bank.
d)
A good used as money that also has a value independent of its use as money
82.
If the FOMC raises the target range, how does arbitrage ensure the policy change is implemented?
a)
overprinting by governing authorities to pay for debts
b)
7
c)
The Fed raises the interest on reserves balances rate, and arbitrage ensures the federal funds rate moves up
d)
44% of M1
83.
What is the correct order of events?
a)
the FOMC adjusts the target range, the fed adjusts the interest on reserves balances rate, and arbitrage moves the federal funds rate into the target range
b)
Banks will borrow in the federal funds market and deposit funds at their Federal Reserve Bank.
c)
M1 and M2
d)
structural
84.
What is the Fed’s primary tool for steering the federal funds rate into the target range?
a)
privately owned but operated in the publics interest who
b)
7
c)
Interest on reserve balances
d)
cows
85.
If the FOMC pursues expansionary policy, how will it adjust the federal funds rate target and the interest on reserves balances rate?
a)
A discouraged worker who is out of the labor force.
b)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
c)
Jerome Powell
d)
are given certain independence from the government
86.
If the FOMC determines that employment or inflation are too low, what kind of policy might it use?
a)
A good used as money that also has a value independent of its use as money
b)
Expansionary/accommodative
c)
neither employed nor in education or training
d)
monetary manipulate money supply to change interest rates while fiscal policy manipulate government spending and taxes
87.
Nominal Rate - Inflation Rate =
a)
economic growth , price stability, full employment
b)
to stimulate weakening or recessionary economy
c)
Structural
d)
Real Rate
88.
You are categorized as employed if
a)
The economy has experienced 5% inflation; average prices are 5% higher.
b)
work at all for pay during survey week
c)
those without marketable skills or a mismatch between skills and opening
d)
the number of people working, divided by the population.
89.
You are categorized as unemployed if
a)
banks are owned by the commercial banks within the bank district
b)
The economy has experienced 5% inflation; average prices are 5% higher.
c)
you did not work for pay AND actively looked for work in last 4 weeks
d)
output per unit of input
90.
You are categorized as not in the labor force if
a)
did not work for pay AND DID NOT actively look for work
b)
3 percent
c)
The increase in competition for funds in the federal funds market will pull the federal funds rate higher.
d)
M2
91.
labor force =
a)
employed + Unemployed
b)
3.5 %
c)
is its efficiency to serve as a medium of exchange, especially since much of it is electronic money
d)
underemployed
92.
Unemployment rate :
a)
$28,084 or less
b)
the ability to earn profits, high wages, and own property
c)
the percent of the labor force defined as unemployed
d)
lower unemployment rates
93.
unemployment rate percentage right now is
a)
Banks will borrow in the federal funds market and deposit funds at their Federal Reserve Bank.
b)
privately owned but operated in the publics interest who
c)
3.8%
d)
Infrequent occurrences like a dowry
94.
The three types of unemployment are
a)
currency P
b)
rate is a national over all figure
c)
the percent of the labor force defined as unemployed
d)
Frictional, Structural, and Cyclical
95.
Frictional unemployemnt is
a)
tools, equipment, buildings, ability, skills, creativity to innovate and develop sophisticated production methods
b)
those entering the labor force or changing jobs
c)
Structural
d)
money that had a store of value
96.
structural unemployment is
a)
privately owned but operated in the publics interest who
b)
53%
c)
those without marketable skills or a mismatch between skills and opening
d)
Money allows people to easily store value if you do not use all your dollars to buy goods and services today you can hold the rest to use in the future
97.
cyclical unemployment is
a)
those unemployed during a recession
b)
rate is a national over all figure
c)
is a bead made from a quahog clam shell.
d)
Average 2 percent over time
98.
frictional unemployment rate + structural unemployment rate =
a)
the amounts in our bank accounts change without our physically handling dollars
b)
natural unemployment rate
c)
money that had a store of value
d)
increase government spending,decrease taxes
99.
3 issues with unemployment measures are
a)
part time work
b)
are given certain independence from the government
c)
is manipulation of government spending and taxes
d)
Banks will borrow in the federal funds market and deposit funds at their Federal Reserve Bank.
100.
declining participation rate
a)
declining participation rate
b)
Frictional, Structural, and Cyclical
c)
between 2.5 and 2.8 %
d)
Money serves as a medium of exchange when sellers are willing to accept it in exchange for goods and services
101.
rate is a national over all figure
a)
increase government spending,decrease taxes
b)
rate is a national over all figure
c)
Frictional
d)
Maximum employment and price stability
102.
NEET means
a)
The Fed uses it to steer the federal funds rate into the FOMC’s target range.
b)
85%
c)
neither employed nor in education or training
d)
7 members from board of governors and 5 district FED Bank presidents
103.
the great recession was between the years of
a)
those without marketable skills or a mismatch between skills and opening
b)
is manipulation of government spending and taxes
c)
Maximum employment and price stability
d)
2007 - 2009
104.
higher education equals
a)
$28,084 or less
b)
lower unemployment rates
c)
president with congressional approval
d)
The economy has experienced 5% inflation; average prices are 5% higher.
105.
To be UPPER CLASS or TOP 20% you must make
a)
dividing the number of unemployed by the labor force
b)
Average 2 percent over time
c)
$142,502 +
d)
money
106.
To be MIDDLE CLASS or MID 20% you must make between
a)
$53,504- $86,488
b)
Banks will borrow in the federal funds market and deposit funds at their Federal Reserve Bank.
c)
Maximum employment and price stability
d)
Interest on reserve balances rate
107.
Median income amount is
a)
usually responsible for the formulation of monetary policy and the regulation of member banks.
b)
$68,703
c)
44% of M1
d)
determinants of worker productivity, educated, healthy, skilled workers and parents — human capita, quality, capital, and technology incentives provided by a market economy with a strong legal and social framework
108.
To be LOWER CLASS or LOW 20% you must make
a)
$28,084 or less
b)
important source of productivity and improvement
c)
hold deposits of commercial banks,assist in check clearing process ( payment process)
d)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
109.
Income means assortative mating which means
a)
less lending and spending
b)
likes marry/ live with likes- matches of two college educated people
c)
unit of account
d)
you did not work for pay AND actively looked for work in last 4 weeks
110.
Anything that performs the function of money is
a)
3.8%
b)
lower unemployment rates
c)
The Fed uses it to steer the federal funds rate into the FOMC’s target range.
d)
money
111.
What are the three functions of money ?
a)
medium of exchange , standard of value , store value
b)
2.5%
c)
monetary
d)
To maintain an inflation rate of about 2%.
112.
medium of exchange
a)
Money serves as a medium of exchange when sellers are willing to accept it in exchange for goods and services
b)
responsible for a key tool- sets the range for the federal funds rate (FFR)
c)
acceptability, relatively scarce, legal tender
d)
$28,084 or less
113.
standard of value
a)
Money is useful because it can provide a standard of value in borrowing and lending
b)
economic growth , price stability, full employment
c)
overprinting by governing authorities to pay for debts
d)
the percent of the labor force defined as unemployed
114.
store value
a)
privately owned but operated in the publics interest who
b)
usually responsible for the formulation of monetary policy and the regulation of member banks.
c)
Money allows people to easily store value if you do not use all your dollars to buy goods and services today you can hold the rest to use in the future
d)
Banks should not be willing to accept a lower rate for their funds.
115.
commodity money
a)
A good used as money that also has a value independent of its use as money
b)
price stability + full employment
c)
2% inflation
d)
monetary
116.
common characteristics of items used as money in the past
a)
stones, cattle, salt, seashells, skin
b)
Maximum employment and price stability
c)
Real Rate
d)
3.5 %
117.
Five factors that make an item suitable for use as a medium of exchange
a)
less lending and spending
b)
acceptable,relatively scarce,divisible,portable,durable
c)
To maintain an inflation rate of about 2%.
d)
Raise the federal funds rate target range
118.
the two overall measures of money supply are
a)
2.5%
b)
are given certain independence from the government
c)
M1 and M2
d)
14 years
119.
M1 is the most
a)
structural
b)
our money is fiat money
c)
narrow definition of the money supply
d)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
120.
money supply formula
a)
privately owned but operated in the publics interest who
b)
acceptability, relatively scarce, legal tender
c)
M1= currency + Checkable deposits ( demand deposits)
d)
Structural
121.
coins + paper money =
a)
stones, cattle, salt, seashells, skin
b)
average prices of goods and services in the typical market for an average consumer
c)
monetary manipulate money supply to change interest rates while fiscal policy manipulate government spending and taxes
d)
currency P
122.
Paper money: Federal Reserve Notes percent is
a)
Frictional
b)
economic growth , price stability, full employment
c)
U.S. is very good at producing stuff and has continued to get better
d)
53%
123.
Checkable deposits percentage
a)
the number of people working, divided by the population.
b)
cyclical unemployment.
c)
44% of M1
d)
medium of exchange
124.
M2 is a broader measure of
a)
money supply (certificates of deposits (CDS)
b)
It will encourage other interest rates to rise, and result in less spending and more saving by households and businesses
c)
Frictional, Structural, and Cyclical
d)
the number of people in the labor force
125.
M1 + saving deposits and small time deposits =
a)
dividing the number of unemployed by the labor force
b)
stones, cattle, salt, seashells, skin
c)
To maintain an inflation rate of about 2%.
d)
M2
126.
M1 is all deposits in
a)
money supply (certificates of deposits (CDS)
b)
likes marry/ live with likes- matches of two college educated people
c)
lower unemployment rates
d)
commercial banks and “thrift” or saving institutions
127.
M2 is a highly financial assets that can be
a)
declining participation rate
b)
important source of productivity and improvement
c)
The economy has experienced 5% inflation; average prices are 5% higher.
d)
easily converted into currency and checkable deposits
128.
what three things give money value ?
a)
acceptability, relatively scarce, legal tender
b)
$53,504- $86,488
c)
those without marketable skills or a mismatch between skills and opening
d)
Money serves as a medium of exchange when sellers are willing to accept it in exchange for goods and services
129.
legal tender is when
a)
A good used as money that also has a value independent of its use as money
b)
U.S. is very good at producing stuff and has continued to get better
c)
A sustained increase in the average price level of goods and services.
d)
our money is fiat money
130.
federal reserve system (1913) makes up
a)
twelve federal reserve banks
b)
A discouraged worker who is out of the labor force.
c)
it was so large that it often wouldn't physically change hands, but people knew who held it and what it was worth
d)
$142,502 +
131.
central banks are
a)
privately owned but operated in the publics interest who
b)
8
c)
usually responsible for the formulation of monetary policy and the regulation of member banks.
d)
Lydia
132.
quasi private banks
a)
privately owned but operated in the publics interest who
b)
Frictional, Structural, and Cyclical
c)
8
d)
most commonly used measure of inflation rate
133.
who own these 12 banks
a)
aggregate supply
b)
They thought because it was pretty, like gold in other places, it would be a good form of money.
c)
banks are owned by the commercial banks within the bank district
d)
is divisible, recognizable, portable, and acceptable
134.
bankers bank
a)
14 years
b)
U.S. is very good at producing stuff and has continued to get better
c)
total amount
d)
provide banks with the same service banks provide their customers
135.
board of governors are policy making arm of
a)
unit of account
b)
0 % to 1 %
c)
the federal reserve system
d)
lower unemployment rates
136.
board members are appointed by
a)
president with congressional approval
b)
Price stability; maximum
c)
overprinting by governing authorities to pay for debts
d)
the amounts in our bank accounts change without our physically handling dollars
137.
board members are appointed for
a)
frictional, cyclical, and structural
b)
0 % to 1 %
c)
14 years
138.
federal open market committee (FOMC) :
a)
are given certain independence from the government
b)
responsible for a key tool- sets the range for the federal funds rate (FFR)
c)
14 years
139.
federal open market committee is made up of
a)
stones, cattle, salt, seashells, skin
b)
currency P
c)
7 members from board of governors and 5 district FED Bank presidents
d)
45%
140.
functions of the federal reserve system
a)
stones, cattle, salt, seashells, skin
b)
federal funds rate
c)
hold deposits of commercial banks,assist in check clearing process ( payment process)
d)
M1 and M2
141.
act as fiscal policy agents for federal government,supervise commercial banks,conduct monetary policy
a)
act as fiscal policy agents for federal government,supervise commercial banks,conduct monetary policy
b)
structural
c)
Banks should not be willing to accept a lower rate for their funds.
d)
president with congressional approval
142.
monetary policy
a)
you did not work for pay AND actively looked for work in last 4 weeks
b)
The increase in competition for funds in the federal funds market will pull the federal funds rate higher.
c)
the FED (FOMC) sets target range for the federal funds rate (FFR) to affect market interest rates and overall financial conditions
d)
federal funds rate
143.
dual mandate equals
a)
money
b)
employed
c)
Expansionary/accommodative
d)
price stability + full employment
144.
banks that need funds to make payments or pay customers can borrow
a)
it was so large that it often wouldn't physically change hands, but people knew who held it and what it was worth
b)
Average 2 percent over time
c)
underemployed
d)
from banks with excess funds
145.
federal funds market
a)
a short term electronic payment market
b)
A discouraged worker who is out of the labor force.
c)
Board of Governors, the Reserve Banks, and the Federal Open Market Committee.
d)
acceptable,relatively scarce,divisible,portable,durable
146.
FED set target range for the
a)
overnight
b)
federal funds rate
c)
part time work
d)
the ability to earn profits, high wages, and own property
147.
expansionary monetary policy is used
a)
The economy has experienced 5% inflation; average prices are 5% higher.
b)
the number of people working, divided by the population.
c)
to stimulate weakening or recessionary economy
d)
natural unemployment rate
148.
Less spending and workers = Lower GDP =
a)
is its efficiency to serve as a medium of exchange, especially since much of it is electronic money
b)
prices tend to decline
c)
neither employed nor in education or training
d)
$68,703
149.
Current CPI level is
a)
deficits
b)
3.5 %
c)
likes marry/ live with likes- matches of two college educated people
d)
99
150.
Current Core level is
a)
Electrum
b)
frictional unemployment
c)
3.8%
d)
Women have had lower rates of unemployment than men.
151.
fiscal policy
a)
currency P
b)
is manipulation of government spending and taxes
c)
the FED (FOMC) sets target range for the federal funds rate (FFR) to affect market interest rates and overall financial conditions
d)
did not work for pay AND DID NOT actively look for work
152.
difference between fiscal policy and monetary policy
a)
monetary manipulate money supply to change interest rates while fiscal policy manipulate government spending and taxes
b)
stones, cattle, salt, seashells, skin
c)
A discouraged worker who is out of the labor force.
d)
you did not work for pay AND actively looked for work in last 4 weeks
153.
who makes fiscal policy ?
a)
privately owned but operated in the publics interest who
b)
part time work
c)
congress and president
d)
Too much money chasing too few goods.
154.
who makes monetary policy
a)
did not work for pay AND DID NOT actively look for work
b)
the FOMC will lower the federal funds rate target range, and the fed will lower the interest on reserves balances rate
c)
FED (FOMC)
155.
Recession / Slow growth
a)
increase government spending,decrease taxes
b)
acceptable,relatively scarce,divisible,portable,durable
c)
rate is a national over all figure
d)
the percent of the labor force defined as unemployed
156.
what happens to fiscal policy budget ?
a)
Average 2 percent over time
b)
deficits
c)
On average, a dollar buys 2 percent fewer goods and services than it did the year before.
d)
Lydia
157.
inflation / Rapid GDP Growth
a)
decrease government spending,increase taxes
b)
$142,502 +
c)
structural
d)
is its efficiency to serve as a medium of exchange, especially since much of it is electronic money
158.
what happens to inflation / Rapid GDP Growth budget ?
a)
7
b)
Frictional, Structural, and Cyclical
c)
budget surplus
d)
the percent of the labor force defined as unemployed
159.
When expansionary monetary policy is used
FOMC moves target FFR range:
policy tools used make market interest rates:
a)
FOMC moves target FFR range: goes down
b)
policy tools used make market interest rates : goes to the moon
c)
policy tools used make market interest rates: falls
d)
FOMC moves target FFR range: goes to the moon
160.
More spending + workers = higher GDP =
a)
down pressure on prices
b)
Upward pressure on prices
c)
moo pressure on prices
d)
ouy pressure on prices
161.
lower interest rates =
a)
none investment spending
b)
lotssss investment spending
c)
no investment spending
d)
more investment spending
162.
restrictive or tight monetary policy
a)
no
b)
no
c)
used when economy is overheating ; discourage lending and spending
d)
no
163.
restrictive or tight monetary policy
FOMC moves target FFR=
policy tools used =market interest rates =
a)
UP
b)
Quantitative easing
c)
UP
d)
Expansionary monetary policy
164.
Higher interest rates =
a)
less lending and spending
b)
Lower interest rates
c)
Stable consumer spending and economic activity
d)
Increased consumer spending and economic activity
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