ECO 203 Week 4 Quiz | Assignment Help | Ashford University
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- 20 Oct 2020
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ECO 203 Week 4 Quiz | Assignment Help | Ashford University
ECO 203 Week 4 Quiz
Week 4 - Quiz
Question 1
The transactions demand for money reflects money’s
function as the __________.
o
standard of value
o
store of value
o
unit of account
o
medium of exchange
Question 2
Five years ago, First Union Bank used a portion of
its customers’ deposits to fund loans to other customers. This practice is
__________
o
no longer allowed in the banking
industry
o
allowed only with the permission of the
depositor
o
called 100% reserve banking
o
called fractional reserve banking
Question 3
If Anaheim Bank has excess reserves, it can lend
some of these to Beach Bank for 1 day at the __________ rate.
o
World Bank
o
federal funds
o
Anaheim Bank’s business loan
o
Beach Bank’s business loan
Question 4
Which of the following is NOT a function of money?
o
rate of return
o
store of value
o
unit of account
o
medium of exchange
Question 5
Economists widely blame the 1937 economic downturn
on the fact that the Fed chose to __________.
o
raise interest rates
o
oversell federal bonds
o
lower reserve requirements
o
raise reserve requirements
Question 6
When depository institutions make loans, the money
supply is __________.
o
unaffected
o
in equilibrium
o
reduced
o
expanded
Question 7
The __________ rule is a form of monetary policy
that stipulates that for each 1% increase in inflation, the Fed should increase
the nominal interest rate by more than 1%.
o
Greenspan
o
Bernanke
o
Friedman
o
Taylor
Question 8
Modern U.S. coins are __________ money.
o
token
o
full-bodied
o
representative
o
commodity
Question 9
When the Fed sets an interest rate target, on what
interest rate does it specifically focus?
o
the T-bill rate
o
the nominal rate
o
the prime rate
o
the federal funds rate
Question 10
The First National Bank of Topeka has checkable
deposits that amount to $5 million and excess reserves that amount to 0. If
their reserve ratio is 10%, what are the bank’s total reserves?
o
$500,000ou A
o
$5.5 million
o
$1 million
o
$4.5 million
USA 
India