ECO 320 M&B2 Final Exam Week 11 answer

Course Money & Banking
Test Final Exam 1

• Question 1

The Glass-Steagall Act was passed into law in

• Question 2

In the CAMELS rating system, the letter C stands for

• Question 3

The law that allowed banks to engage in investment banking was the

• Question 4

A charter is a bank’s application for

• Question 5
0 out of 5 points

According to Keynesians, the main source of the business cycle is

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• Question 6

Labor productivity is calculated as

• Question 7

The period from October 1949 to November 1970 is called the

• Question 8

A period when a recession ends and an expansion begins is

• Question 9

A steady state is a situation in which the key variables in the model

• Question 10

The starting point of a dynamic model is

• Question 11

A dynamic model is a model that

• Question 12

The liquidity effect is the

• Question 13

The largest component of aggregate demand is

• Question 14

A rise in wealth will cause household investment in housing to

• Question 15

Aggregate supply tells us

• Question 16

With the price level on the vertical axis and output on the horizontal axis, the short-run aggregate-supply curve

• Question 17

Precautionary savings is

• Question 18

A situation in which all markets are in equilibrium and all economic agents have made decisions in their own best interest is called

• Question 19

The view that a change in the timing of taxes does not affect people’s consumption is known as the

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• Question 20

In a real business cycle (RBC) model,

 

Set  2

Course Money & Banking
Test Final Exam 2
 
 

•  Question 1

 
 The balance on capital and financial account is
Answer   
   
•  Question 2

 Investments in other countries in the form of portfolio investment or direct investment minus what foreigners invest in the domestic country is known as NFI, or
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•  Question 3

 An unexpected change in an exogenous variable is known as
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•  Question 4

 If one country is hit with a shock that increases the value of its currency and causes its net exports to decline and other countries' net exports to rise, causing the income in those countries to rise, then the business cycle is being transmitted internationally through ____ effect.
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•  Question 5

 Expenditures of each Federal Reserve Bank are approved by
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 Selected Answer: 
 
•  Question 6
 There are ____ Federal Reserve Banks.
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 Selected Answer: 
  
•  Question 7

 Primary government securities dealers are ________ that meet certain capital requirements and agree to actively transact with the Fed when it engages in open-market operations.
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 Selected Answer: 
•  Question 8

 The FOMC directive
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•  Question 9
0 out of 5 points
 
 Reserves held by banks at the Fed that earn implicit interest payments in the form of earnings credits for Fed services are known as
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•  Question 10

 The main asset on the Federal Reserve's balance sheet is
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•  Question 11

 A bank in poor condition may take out a loan under close Fed scrutiny. Such a loan is known as
Answer   
 
•  Question 12

 A haircut is
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•  Question 13

 Under expansionary monetary policy, the unemployment rate is ____ in the short run and inflation is ____ in the long run.
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•  Question 14

 The idea that policymakers may not immediately get up-to-date statistics on economic variables is known as the ____ lag.
Answer   

 •  Question 15

 
 The unemployment rate minus the natural rate of unemployment is known as the
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•  Question 16

 The Fed’s loss function is another name for the Fed’s
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 Selected Answer: 
 
•  Question 17

 When a central bank increases money growth and reduces the interest rate, the bank is said to ________ policy.
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•  Question 18

 
 Transparent describes a central bank that
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•  Question 19

 
  Under an activist rule,
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•  Question 20

 In inflation targeting, the range that represents the goal for the inflation rate is known as the