Money and banking quiz | Economics homework help

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Question 4 (1 point)

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A rise in the real interest rate in a country causes its currency to

 

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Question 5 (1 point)

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In practice, the primary tool used by the Federal Reserve to control the money supply is

 

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Question 6 (1 point)

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A change in which of the following tools shifts the demand for reserves?

 

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Question 7 (1 point)

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The goal of quantitative easing is to _____.

 

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Question 8 (1 point)

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In practice, discount lending is used

 

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Question 9 (1 point)

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Central banks make money from interest on

 

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Question 10 (1 point)

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Which of the following is a liability of the Fed?

 

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Question 11 (1 point)

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If the Fed sells $50 in securities and the reserve requirement is 25%, according to the simple formula for the money multiplier, the money supply

 

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Question 12 (1 point)

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If the Fed buys $100 in securities and the reserve requirement is 10%, according to the simple formula for the money multiplier, the money supply

 

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Question 13 (1 point)

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Which of the following is a difference between Keynes liquidity preference theory and the modern quantity theory of money?