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30 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Our currency is issued by |
US treasury Federal Reserve Individual commercial bank Internal revenue service |
Federal Reserve |
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Which is not a job of the Federal Reserve? |
Check clearing Issuing currency Insuring bank deposits Controlling the rate of growth of the money supply |
Insuring bank deposits |
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Which statement is true? |
Actual reserves - required reserves = excess Required - actual = excess Required + actual = excess None of the above |
Actual - required = excess |
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The Board of Governors of the Federal Reserve does each of the following except, |
Sit on the Federal open market committee Serve on the board at the pleasure of the president, who can make individual governors resign at any time Carry out monetary policy Raise and lower reserve requirements |
Serve on the board at the pleasure of the president, who can make individual governors resign at any time |
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Fiscal and one try policy are conducted by _____ people to attain ________ goals. |
Same, same Different, different Same, different Different, same |
Different, same |
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Which statement is true? |
We have had a central bank since 1789. We have never had a central bank. Our central bank was formed in 1913. We did not have a central bank prior to the Federal Reserve. |
Our central bank was formed in 1913. |
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Required reserves are |
Equal to total reserves monies excess Equal to total reserves minus checkable deposits Always less than total Determined by multiplying the level of check able deposits times the discount rate |
Equal to total reserves minus excess |
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Commercial banks are required by law to hold reserves. These reserves are specified as percentages of a bank's |
Total assets Total liabilities Checkable deposit liabilities Holdings of government securities |
Checkable deposit liabilities |
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The rate of growth of our money supply is controlled by |
President Congress Federal Reserve US treasury |
Federal Reserve |
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During the course of a bad recession the Fed would probably be doing 3qc of the following except |
Selling securities on the open market Lowering interstate rates Lowering reserve requirements Lowering the discount rate |
Selling securities on the open market |
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During the 19th century, ______ was the mainstream school of economics. |
Classical Keynesian Monetarily Supply side |
Classical |
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The most prominent classical economist was |
Karl Marx Adam Smith John Maynard Keynes Milton Friedman |
Adam Smith |
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The classical economists believed that recessions |
Needed to be fought with monetary and fiscal policy Would develop into depression s Develop into inflation Would cure themselves |
Would cure themselves |
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Says law was the centerpiece of |
Keynesian economics Communism Classical economics Rational expectations theory |
Classical economics |
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The quantity theory of money originated under |
Classical economics Keynesian economics Monetarism Supply side economics |
Classical economics |
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Keynesian economics focused on |
Equally at curing recessions and inflation Mainly at curing inflations Mainly at curing recessions Curing hyperinflation |
Mainly at curing recessions |
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The only school of economics that could be construed as advocating big government are the |
Classicals Keynesians Monetarists Supplysiders |
Keynesians |
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John Maynard Keynes believed that a recession was caused entirely by |
Inadequate aggregate supply Inadequate aggregate demand Too much inflation Too much government intervention |
Inadequate aggregate demand |
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The equation of exchange |
Always balances Usually balances Sometimes Never |
Always |
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The equation of exchange |
Is GDP= C+I+G+Xn Never balances States that if M rises by a certain %, P must rise by that same % Is MV=PQ |
MV=PQ |
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In the 1970s and 1980s our productivity |
Increased at an increasing rate increased at a decreasing rate Stayed the same Decreased |
Increased at a decreasing rate |
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The industrial revolution began around the year |
1650 1750 1850 1950 |
1750 |
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Since 1990, the average number of hours worked per year has |
Increased Stayed about the same Decreased |
Decreased |
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The Maltusian theory said that population tended to grow in a ________ progression, while the food supply tended to grow in a _______ progression. |
Arithmetic, arithmetic Geometric, geometric Geometric, arithmetic Arithmetic, geometric |
Geometric, arithmetic |
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Compared to China the US rate of savings is ________ and our rate of capital formation is ________. |
Lower, lower Higher,higher Lower,higher Higher,lower |
Lower, lower |
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The US rate of productivity growth in the 1970s and 1980s was ______ the rate of productivity growth in the 1960s. |
Twice One and a half Equal to One third |
One Third |
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Each of the following would be an example of technological change, except |
Increases in output due to increases in capital Improvements in the qualities of resources Improved knowledge about to how combine resources The introduction of totally new production processes |
Increases in output due to increases in capital |
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Which statement is false? |
Health and safety regulations diverted resources from investment. Higher energy costs stimulated economic growth Environmental protection legislation slowed economic growth Government regulation has increased the cost of doing business |
Higher costs stimulated economic growth |
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Immigration has _____ our rate of economic growth. |
Increased Slowed Had no effect |
Increased |
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Since the 1980s most of the economic growth has come from |
Emerging economies in Africa Eastern European countries Emerging economies of Asia Middle eastern countries |
Emerging economies of Asia |
