ECON 102 Quiz 4

ECON 102 Quiz 4

Author: Dannie Young

Click link for more description


100.0/ 100.0 Points

Question 1 of 10

10.0/ 10.0 Points

The supply of money in the U.S. economy is determined primarily by
A.decisions made by the Federal Reserve and the U.S. Treasury.

B.the actions of the Federal Reserve and the banking system.

C.consumers and the banking system.

D.the demand for money in the economy.


Question 2 of 10

10.0/ 10.0 Points

One of the essential functions that a bank performs is
A.purchasing government bonds.

B.creating deposits by lending required reserves.

C.transferring money from savers to lenders.

D.owning assets like real estate.


Question 3 of 10

10.0/ 10.0 Points

At lower interest rates the
A.money supply is indeterminate.

B.money supply is lower.

C.quantity of money demanded is higher.

D.quantity of money demanded is lower.


Question 4 of 10

10.0/ 10.0 Points

From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A.bond recall procedures.

B.open market purchases.

C.backflip bond investments.

D.voluntary redemption procedures


Question 5 of 10

10.0/ 10.0 Points

Selling government bonds through open market operations allows the Federal Reserve to
A.decrease money in the treasury.

B.decrease the money supply in the private sector.

C.receive discounts on future sales.

D.receive a high rate of interest on the bonds.

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.