Presently a major deterrent to bank panics in the United States?

When determining GDP..?

• a. both new and used goods are counted. b. the dollar is used as the common measure. c. homes are counted two times for every car included. d. quality of goods is considered. 2 Marks: 2 A tight money policy would cause Choose one answer. a. people to borrow more money. b. home sales to increase. c. businesses to cut back on production. d. businesses to borrow money to expand capacity. 3 Marks: 2 A car produced by General Motors in a plant in Ontario, Canada, Choose one answer. a. would count in GDP. b. would run better in the snow. c. would not count in GDP or GNP. d. would count in GNP. 4 Marks: 2 Welfare payments made to individuals are called Choose one answer. a. discretionary income. b. national income. c. wages. d. transfer payments. 5 Marks: 2 When inflation occurs, the purchasing power of the dollar Choose one answer. a. decreases. b. initially increases, then decreases. c. remains the same. d. increases. 6 Marks: 2 Gross domestic product that has been adjusted for inflation is called Choose one answer. a. CPI. b. real GDP. c. GDP. d. national income. 7 Marks: 2 If current GDP was $10,000 and the price deflator was 110, then real GDP would be Choose one answer. a. $9,090. b. $11,000. c. $10,000. d. $9,352. 8 Marks: 2 If the CPI was 115 in 2000 and rose to 124 in 2003, what was the total increase in prices as a percentage? Choose one answer. a. 21.1% b. 7.8% c. 3% d. 9% 9 Marks: 2 The interest rate that a bank charges its best business customers is called the Choose one answer. a. prime rate. b. business rate. c. discount rate. d. federal funds rate. 10 Marks: 2 Which of the following would cause the aggregate demand curve to shift to the right? Choose one answer. a. a decrease in taxes b. oil prices increase c. an increase in taxes d. oil prices decrease 11 Marks: 2 The Fed could reduce, or contract, the money supply by Choose one answer. a. lowering the reserve requirement. b. buying bonds on the open market. c. raising the federal funds rate. d. All choices are correct. 12 Marks: 2 The highest point in the business cycle is the Choose one answer. a. peak. b. contraction. c. expansion. d. trough. 13 Marks: 2 Any period of at least 6 months in which real GDP does not grow is Choose one answer. a. a depression. b. an expansion. c. two quarters. d. a recession. 14 Marks: 2 Which of the following is not a main force behind business fluctuations? Choose one answer. a. government activity b. leading indicators c. external factors d. business investment 15 Marks: 2 The number of building permits issued for private housing is a/an Choose one answer. a. leading indicator. b. lagging indicator. c. inflationary indicator. d. coincident indicator. 16 Marks: 2 Which of the following is a commodity money? Choose one answer. a. coins b. paper currency c. a negotiable bond d. cattle 17 Marks: 2 If you put money in a certificate of deposit, you are using it as a Choose one answer. a. store of value. b. medium of exchange. c. commodity. d. unit of accounting. 18 Marks: 2 United States currency is Choose one answer. a. gold reserve money. b. representative money. c. commodity money. d. fiat money. 19 Marks: 2 An ATM can receive deposits, give out funds, accept payments, and Choose one answer. a. make loans. b. transfer funds between accounts. c. provide credit ratings. d. cash checks. 20 Marks: 2 The measure of money called M1 consists of all currency, all checkable deposits, and Choose one answer. a. mortgages. b. traveler's checks. c. certificates of deposit. d. savings bonds. 21 Marks: 2 The Federal Reserve bank was created in 1913 to Choose one answer. a. manipulate the money supply. b. collect taxes. c. insure bank deposits. d. end financial panics. 22 Marks: 2 The body of the Fed that determines monetary policy is the Choose one answer. a. Federal Open Market Committee. b. Monetary Advisory Board. c. Board of Governors. d. Federal Advisory Council. 23 Marks: 2 If the economy were in a recession, the Fed would probably Choose one answer. a. follow a tight money policy. b. seek the advice of the President and his administration. c. do nothing. d. follow a loose money policy.

• Answer:

  BCDAADDCBABCDABDCCDBBCA