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The Federal Reserve District Banks
are owned by:

a.the federal government

b.a combination of state governments
and the federal government.

c.the board of governors.

d.their member banks.

e.both (b) and (d) above.

The amount of reserves remaining
after reserve requirements have been satisfied is called:

a.the required reserve ratio.

b.legal reserves.

c.federal reserves.

d.excess reserves.

When a person cashes a check drawn on
her own account, the money supply:

a.increases.

b.decreases.

c.remains the same.

d.increases because of interest
rates.

An expansionary monetary policy tends
to ________ the United States dollar relative to foreign currencies
and to ______ our balance of trade.

a.raise, help

b.raise, hurt

c.lower, help

d.lower, hurt

An increase in the money supply will
tend to:

a.lower interest rates and lower the
equilibrium GDP.

b.lower interest rates and increase
the equilibrium GDP.

c.increase interest rates and
increase the equilibrium GDP.

d.increase interest rates and lower
the equilibrium GDP.

e.do none of the above.