Multiple choice

1. “Easing” monetary policy would have what impact on the value of the dollar against other currencies?

a. increase

b. decrease

c no effect

d. none of the above

2. M2 includes:

a. currency in circulation 

b. demand deposits

c. both of the above 

d. none of the above

3. Which of the following powers or tools of the Fed impacts the monetary base most significantly?

a. discount rate 

b. Reg Q 

c. open market operations 

d. Bank examination

4. Which of the following is not a channel of transmission of monetary policy?

a. Reg Q interest rate ceilings 

b. consumer spending for durable goods and housing

c. net exports 

d. business investment in real assets