Question : 41) Open market operations when the Fed buys or sells A) : 1227821

 

 

41) Open market operations are when the Fed buys or sells

A) government securities from the government.

B) corporate securities from banks or some other business.

C) government securities from banks or some other business.

D) corporate securities from the government.

E) gold.

Answer:  C

Topic:  Fed policy tools, open market operations

Skill:  Level 1: Definition

Section:  Checkpoint 11.3

Status:  CT

 

42) When the Fed engages in open market operations, it is buying or selling

A) capital equipment.

B) U.S. government securities newly issued by the U.S. Treasury.

C) U.S. government securities.

D) loans made to banks to meet the legal reserve requirement ratio.

E) gold.

Answer:  C

Topic:  Fed policy tools, open market operations

Skill:  Level 1: Definition

Section:  Checkpoint 11.3

Status:  TPS

 

43) In response to the financial crisis in 2008, the Fed created which of the following policy tools?

A) quantitative easing

B) the required reserve ratio

C) the discount rate

D) the federal funds rate

E) open market operations

Answer:  A

Topic:  Fed policy tools, crisis measures

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  CD new

44) Which of the following policy tools did the Fed create in 2008 to address the financial crisis?

i)quantitative easing

ii)credit easing

iii)open market operations

A) i and ii

B) i only

C) ii only

D) i and iii

E) ii and iii

Answer:  A

Topic:  Fed policy tools, crisis measures

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  CD new

 

45) Quantitative easing by the Fed refers to

A) the creation of bank reserves by engaging in large-scale open market operation at very low interest rates.

B) selling private securities issued by the Fed.

C) decreasing the money supply during a recession to prevent inflation.

D) lowering the federal funds rate while increasing the discount rate.

E) lowering the required reserve ratio to zero percent.

Answer:  A

Topic:  Quantitative easing

Skill:  Level 1: Definition

Section:  Checkpoint 11.3

Status:  CD new

 

46) If the Fed engages in quantitative easing, it has likely

A) decreased the federal funds rate to almost zero by buying large sums of securities.

B) increased the discount rate to prevent inflation.

C) decreased the discount rate by selling its own securities.

D) increased the federal funds rate by selling private securities.

E) started paying interest on required reserves.

Answer:  A

Topic:  Quantitative easing

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  CD new

47) In 2008, the Fed created a new policy tool called

A) quantitative easing, which allowed the Fed to buy private securities as well as government securities..

B) quantitative easing, which required the Fed to pay interest on required reserves.

C) open market operations, which required the Fed to buy securities from only the federal government.

D) federal funds zero-rate, which required the Fed to lower the rate to near zero percent.

E) interest rate reductions, which allowed the Fed to lower interest rates paid to banks.

Answer:  A

Topic:  Quantitative easing

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  CD new

 

48) ________ by the Fed means that the Fed ________.

A) Credit easing; bought private securities from financial institutions

B) Credit easing; made loans directly to home buyers

C) Credit easing; tried to lower long-term interest rates

D) Quantitative easing; required private banks to increase their lending to home buyers

E) Quantitative easing; decreased in the required reserve ratio

Answer:  A

Topic:  Credit easing

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  New

 

49) The policy tool of “credit easing” refers to the ________.

A) Fed’s purchase of private securities to stimulate banks’ lending

B) Fed’s requirement that the federal government must lend to directly to home buyers

C) federal government’s requirement that the Fed must lend directly to home buyers

D) Fed’s lowering of the federal funds rate to zero

E) Treasury’s issuance of federal debt to finance home buying

Answer:  A

Topic:  Credit easing

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.3

Status:  Revised

 

50) The monetary base is the sum of

A) Federal Reserve notes and banks’ reserves at the Fed.

B) coins, Federal Reserve notes, and individuals’ deposits at the Fed.

C) Federal Reserve notes, Treasury deposits at the Fed, banks’ reserves at the Fed, and coins.

D) coins, Federal Reserve notes, and banks’ reserves at the Fed.

E) coins, Federal Reserve notes, and gold at the Fed.

Answer:  D

Topic:  Monetary base

Skill:  Level 1: Definition

Section:  Checkpoint 11.3

Status:  CT

 

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