DENNISWRIGHT

       A parent gives a teenager a $10 bill in exchange for her babysitting services.        A homeowner gives an exterminator a check for $50 in exchange for extermination services.        A barber gives a plumber a haircut in exchange for the plumber fixing the barber’s leaky faucet.        All of the above are examples of barter.

       Bob with Alice        Ted with Alice        Bob with Mary, Ted with Bob, and Ted with Alice        None of the pairs above has a double coincidence of wants.

       cash        cash and stocks and bonds        cash and stocks and bonds and real estate        cash and stocks and bonds and real estate and all other assets

       requires a double coincidence of wants.        leads to less specialization.        makes trades less costly.        None of the above is correct.

       a medium of exchange.        a unit of account.        a store of value.        None of the above is correct.

       a unit of account        a store of value        medium of exchange        All of the above are correct.

       cash and stocks        cash but not stocks        stocks but not cash        neither cash nor stocks

       currency        U.S. government bonds        fine art        All of the above are correct.

       money, bonds, cars, houses        money, cars, houses, bonds        bonds, money, cars, houses        bonds, cars, money, houses

       nothing else.        other checkable deposits.        traveler's checks plus other checkable deposits.        traveler's checks plus other checkable deposits plus savings deposits.

       a store of value.        a medium of exchange.        a unit of account.        a method of barter.

       You list prices for candy sold on your Web site, www.sweettooth.com, in dollars.        You pay for your theater tickets with dollars.        You hold currency even though you don’t intend to spend it right away.        None of the above is correct.

       liquid asset.        medium of exchange.        unit of account.        store of value.

       the ease with which an asset is converted to the medium of exchange.        the measurement of the intrinsic value of commodity money.        the measurment of the durability of a good.        how many time a dollar circulates in a given year.

       The Federal Reserve has 14 regional banks. The Board of Governors has 12 members who serve 7-year terms.        The Federal Reserve has 14 regional banks. The Board of Governors has 7 members who serve 14-year terms.        The Federal Reserve has 12 regional banks. The Board of Governors has 12 members who serve 7-year terms.        The Federal Reserve has 12 regional banks. The Board of Governors has 7 members who serve 14-year terms.

       deposits of its customers and loans to it customers        deposits of its customers but not loans to its customers        loans of its customers but not the deposits of its customers        neither the deposits of its customers nor the loans to its customers

       $125; one explanation for this relatively small average is that many people use credit and debit cards to make transactions.        $125; one explanation for this relatively small average is that U.S. citizens hold a lot of foreign currency.        $3,700; one explanation for this relatively large amount is that criminals probably prefer currency as a medium of exchange.        $3,700; one explanation for this relatively large average is that U.S. citizens hold a lot of foreign currency.

       hold more reserves than deposits.        generally lend out a majority of the funds deposited.        cause the money supply to fall by lending out reserves.        All of the above are correct.

       a $5 bill in your wallet        $100 in your checking account        $500 in your savings account        All of the above are included in M1.

       currency        demand deposits        traveler’s checks        credit cards

21. If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve (Points : 5)

Question 22. 22. Which of the following items is included in M2? (Points : 5)

Question 23. 23. The Fed’s policy decisions have an important influence on (Points : 5)

Question 24. 24. When conducting an open-market purchase, the Fed (Points : 5)

Question 25. 25. Which of the following is correct concerning the FOMC? (Points : 5)

Question 26. 26. Monetary policy affects employment (Points : 5)

Question 27. 27. A bank has $10,000 in deposits and $8,000 in loans. It has loaned out all it can given the reserve requirement. It follows that the reserve requirement is (Points : 5)

Question 28. 28. The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $355 million dollars in loans. Given this information you find that the reserve requirement must be (Points : 5)

Question 29. 29. A bank has a 10 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. (Points : 5)

Question 30. 30. If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent receives a deposit of $400 it has a (Points : 5)

Question 31. 31. In the special case of the 100 percent-reserve banking the money multiplier is (Points : 5)

Question 32. 32. Table 16-5 . Bank of Pleasantville

Refer to Table 16-5. If the Fed’s reserve requirement is 9 percent, then what quantity of excess reserves does the Bank of Pleasantville now hold? (Points : 5)

Question 33. 33. Table 16-3 . The First Bank of Fairfield

Refer to Table 16-3. Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Fairfield, and if the bank makes new loans so as to keep its reserve ratio unchanged, then the amount of new loans that it makes will be (Points : 5)

Question 34. 34. If the reserve ratio is 12.5 percent, then $2,000 of additional reserves can create up to (Points : 5)

Question 35. 35. If the reserve ratio is 10 percent, $1,000 of additional reserves can create up to (Points : 5)

Question 36. 36. If the reserve requirement is 10 percent and banks desire to hold no excess reserves, when a bank receives a new deposit of $100, (Points : 5)

Question 37. 37. If the reserve ratio is 2.5 percent, then the money multiplier is (Points : 5)

Question 38. 38. The discount rate is (Points : 5)

Question 39. 39. The interest rate that the Fed charges banks that borrow reserves from it is the (Points : 5)

Question 40. 40. If R represents the reserve ratio for all banks in the economy, then the money multiplier is (Points : 5)

Question 41. 41. Table 16-4 . The First Bank of Roswell

Refer to Table 16-4. If the bank faces a reserve requirement of 20 percent, then it (Points : 5)

Question 42. 42. If the discount rate is raised then banks borrow (Points : 5)

Question 43. 43. In 1991, the Federal Reserve lowered the reserve requirement from 12 percent to 10 percent. Other things the same this should have (Points : 5)

Question 44. 44. Table 16-6 . Bank of Springfield

Refer to Table 16-6. Assuming the Bank of Springfield and all other banks have the same reserve ratio, then what is the value of the money multiplier? (Points : 5)

Question 45. 45. If the Federal Reserve increases the interest rate on bank deposits at the Fed, banks will want to hold (Points : 5)

Question 46. 46. The Fed increases the reserve requirement, but it wants to offset the effects on the money supply. Which of the following should it do? (Points : 5)

Question 47. 47. If the central bank in some country lowered the reserve requirement, then the money multiplier for that coun-try (Points : 5)

Question 48. 48. The manager of the bank where you work tells you that the bank has $400 million in deposits and $340 mil-lion dollars in loans. The Fed then raises the reserve requirement from 10 percent to 15 percent. Assuming everything else stays the same, how much is the bank holding in excess reserves after the increase in the re-serve requirement? (Points : 5)

Question 49. 49. If the money multiplier decreased from 20 to 12.5, then (Points : 5)

Question 50. 50. The Fed sets the interest that borrowers pay on loans from (Points : 5)