ECON 312 Week 6 Quiz

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ECON 312 Week 6 Quiz

1.     (TCO 7) If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as

2.     (TCO 7) The amount of money reported as M2

3.     (TCO 7) Answer the question on the basis of the following list of assets:

4.     (TCO 7) Assume Company X deposits $100,000 in cash in Commercial Bank A.  If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent,  Bank A, by itself, can initially increase the money supply by a maximum of

5.     (TCO 7) A bank temporarily short of required reserves may be able to remedy this situation by

6.     (TCO 7) Which of the following is correct?

7.     (TCO 7) The asset demand for money

8.     (TCO 7) If the quantity of money demanded exceeds the quantity supplied

9.     (TCO 7) Which of the following is not a tool of monetary policy?

10.   (TCO 7) In the latter end of 2001 the Fed cut the federal funds rate several times.  The Fed's purpose was to

11.   (TCO 7) Explain what is meant by fractional reserve banking. Relate this to money creation and risk to the bank.

12.   (TCO 7) Identify the four major instruments of monetary policy.