Question : 101) An increase in the currency drain ratio A) decreases the : 1238056

 

101) An increase in the currency drain ratio

A) decreases the quantity of money.

B) decreases the monetary base.

C) increases banks’ reserves.

D) increases banks’ deposits.

E) has no effect on the amount of the monetary base or the quantity of money.

102) ________ increases the size of the money multiplier.

A) An increase in the currency drain ratio

B) An open market purchase of government securities by the Fed

C) A reduction in the desired reserve ratio

D) An open market sale of government securities by the Fed

E) An increase in the size of open market operations

103) If the monetary base does not change and the desired reserve ratio increases, the money multiplier ________ and the quantity of money ________.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) decreases; does not change

104) The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base.

A) larger; larger; decrease

B) larger; larger; increase

C) larger; smaller; decrease

D) smaller; larger; decrease

E) smaller; larger; increase

105) When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency, then the money multiplier ________ in size and the amount of money created by an open market operation ________.

A) increases; decreases

B) does not change; increases

C) decreases; decreases

D) increases; increases

E) decreases; does not change

106) Decisions of ________ determine the magnitude of the monetary multiplier.

A) only the Fed

B) only the public

C) both the Fed and the public

D) neither the Fed nor the public

E) the Fed and the U.S. Congress

107) As a result of the Fed’s actions during the 2008 financial crisis and banks’ lending policies,

A) the M2 money multiplier has fallen from about 9 to about 4.

B) the M2 money multiplier more than doubled.

C) the monetary base decreased by 50 percent.

D) the ratio of currency to M2 deposits more than doubled.

E) the reserve requirement ratio increased.

108) As a result of the Fed’s actions during the 2008 financial crisis and banks’ lending policies, the money multiplier ________ as a direct result of the ________.

A) fell from about 9 to about 4; surge in banks’ desired reserve ratios as they took on less risk

B) rose from about 4 to about 9; surge in banks’ desired reserve ratios as they took on less risk

C) fell from about 9 to about 4; low risk experienced by banks because of the FDIC increasing their default coverage amounts

D) rose drastically; consistent decrease in banks’ desired reserve ratios as they took on less risk

E) decreased drastically; consistent decrease in banks’ desired reserve ratios as they took on less risk

109) As of 2013, the U.S. monetary base has ________ its 2007 level, the level held before the 2008 financial crisis, as a direct result of ________.

A) quadrupled; the Fed’s actions with quantitative easing

B) doubled; the Fed’s actions with quantitative easing

C) tripled; the Fed’s actions with quantitative easing

D) quadrupled; the Fed’s actions and the resulting reduction of the money multiplier

E) tripled; the Fed’s actions and the resulting reduction of the currency drain

110) The M2 multiplier in the United States is currently about

A) 1.

B) 4.

C) 16.

D) 50.

E) 23.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more