[{"id":213884,"question":"The central bank and the government are working against each other if as the government cuts taxes the central bank","choices":[{"text":"Sells government bonds","value":"A"},{"text":"Lowers the discount rate","value":"B"},{"text":"Increase the money supply","value":"C"},{"text":"Decrease the legal reserve requirements","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213883,"question":"\" A growing number of economists view the Fed's new willingness to take on more of the nation's debt as inflationary in the long run.\" This inflation worry is because.","choices":[{"text":"The government may tax less","value":"A"},{"text":"The debt may become excessive","value":"B"},{"text":"The government may spend more","value":"C"},{"text":"The money supply may increase excessively","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213882,"question":"\"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity \"If velocity were trending upward the target money growth rate would be adjusted.","choices":[{"text":"Upward","value":"A"},{"text":"Down ward","value":"B"},{"text":"To be zero","value":"C"},{"text":"To match inflation","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213881,"question":"\"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time \"The advocates of monetarism wish it to the rigid in its application over all periods of time to.","choices":[{"text":"Weaken fiscal policy","value":"A"},{"text":"Avoid monetary policy errors","value":"B"},{"text":"Strengthen the impact of monetary policy","value":"C"},{"text":"Ensure the independence of the central bank","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213880,"question":"\"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.","choices":[{"text":"Taxes low","value":"A"},{"text":"Budgets balanced","value":"B"},{"text":"Money growth low","value":"C"},{"text":"Government spending in check","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213879,"question":"\"The earlier predictions underestimated currency in circulation and treasury balances at the Fed, both of which drained reserves from the banking system\" Lower reserves means.","choices":[{"text":"Lower interest rates","value":"A"},{"text":"Lower money supply","value":"B"},{"text":"Lower unemployment","value":"C"},{"text":"Higher inflation","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213878,"question":"The money multiple tells us teh ultimate increase in.","choices":[{"text":"The income level due to an increase in the money base","value":"A"},{"text":"The money supply due to an increase in the money base.","value":"B"},{"text":"The money supply due to an increase in the income level","value":"C"},{"text":"The income level due to an increase in the money supply","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213877,"question":"A state of government bonds by the central bank should cause","choices":[{"text":"Bond prices to rise","value":"A"},{"text":"an increase in the supply of money","value":"B"},{"text":"An increase in chartered banks loans","value":"C"},{"text":"A decrease in reserves of the banking system.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213876,"question":"If the central bank prints more 10 billion and spends them then as a direct result of this action.","choices":[{"text":"M1 and M2 both increases","value":"A"},{"text":"Neighed M1 nor M2 increase","value":"B"},{"text":"M1 increase but M2 does not","value":"C"},{"text":"M2 increased but M1 does not.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213875,"question":"The quantity of money demanded varies.","choices":[{"text":"Directly with both prices and output","value":"A"},{"text":"Inversely with both prices and output","value":"B"},{"text":"Directly with prices and inversely with output","value":"C"},{"text":"Inversely with prices and directly with output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213874,"question":"The quantity of money demanded varies","choices":[{"text":"Directly with both prices and output","value":"A"},{"text":"Inversely with both prices and output","value":"B"},{"text":"Directly with prices and inversely with output","value":"C"},{"text":"Inversely with prices and directly with output","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213873,"question":"You move some of your savings account balance into your checking account.","choices":[{"text":"M2 falls and M1 rises","value":"A"},{"text":"M1 falls and M2 rises","value":"B"},{"text":"M1 and M2 are unchanged","value":"C"},{"text":"M1 rises and M2 remains unchanged","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213872,"question":"Money and income are.","choices":[{"text":"Mirror image of each other","value":"A"},{"text":"Two quite different concepts","value":"B"},{"text":"Both measured as a per annum flow","value":"C"},{"text":"Two ways of looking at the same thing.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213871,"question":"\"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans\". How would the central bank manages these excess reserves.","choices":[{"text":"By buying bonds","value":"A"},{"text":"By selling bonds","value":"B"},{"text":"By changing reserve requirements","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213870,"question":"\"The impact on this monetary aggregate of extensive finance innovation -the changes in the kinds of deposits and services offered by banks led the central bank to drop M1 as a n intermediate target with the changes in the way the public was holding payments balances the M1 aggregate no longer that the same reliable link to.","choices":[{"text":"Tax rates","value":"A"},{"text":"The money supply","value":"B"},{"text":"Aggregate demand","value":"C"},{"text":"Government spending","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213869,"question":"\"Money deposited for a term is not left in bank vaults but is loaned out by the banks This means that is dollar on deposit can flow back into the banking system one or more times and that dollar can expand the money supply What cnterminlogy do economists use to refer to the proses described in this clip.","choices":[{"text":"The multiplier","value":"A"},{"text":"The money multiplier","value":"B"},{"text":"Required reserve ratio","value":"C"},{"text":"Open market operations","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213868,"question":"What happens to the money supply if the deficit is financed by selling bonds to the central bank.","choices":[{"text":"The money supply increases","value":"A"},{"text":"The money supply decreases","value":"B"},{"text":"The money supply is unaffected","value":"C"},{"text":"We cannot tell what will happen to the money supply","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213867,"question":"What happens to the money supply if the deficit is financed by selling bonds to the general public.","choices":[{"text":"The money supply increaes","value":"A"},{"text":"The money supply decreases","value":"B"},{"text":"The money supply is unaffected","value":"C"},{"text":"We cannot tell what will happen to the money supply","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213866,"question":"The board pumps money out of the economy by","choices":[{"text":"Buying bonds","value":"A"},{"text":"Selling bond","value":"B"},{"text":"Creating cash","value":"C"},{"text":"Lowering the reserve requirements.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213865,"question":"What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.","choices":[{"text":"The multiplier","value":"A"},{"text":"The money multiplier","value":"B"},{"text":"Required reserve ratio","value":"C"},{"text":"Open market operations","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213864,"question":"How do the banks gain from this corporate behavior.","choices":[{"text":"More loans can be made","value":"A"},{"text":"Tax free profits can be made","value":"B"},{"text":"Interest rates can be increased","value":"C"},{"text":"By circumvent banking regulations","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213863,"question":"Why would corporations want to achieve zero balances in their checking accounts.","choices":[{"text":"To earn more interest","value":"A"},{"text":"To avoid paying taxes","value":"B"},{"text":"to keep a low profile","value":"C"},{"text":"To circumvent banking regulations","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213862,"question":"What is the significance of underestimating transactions money.","choices":[{"text":"Monetary policy will be over simulating the economy","value":"A"},{"text":"Monetary policy will be putting a drag on the economy","value":"B"},{"text":"there is a need for money that the central bank should be meating.","value":"C"},{"text":"The economy has too much money and there frore not enough spending.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213861,"question":"\"Transactions\" money is money used as a","choices":[{"text":"Store of value","value":"A"},{"text":"Unit of account","value":"B"},{"text":"Medium of exchange","value":"C"},{"text":"Standard of deferred payment","value":"D"},{"value":"E"}],"correctAnswer":3}]