Words of Wisdom:

"HUMANS do it better." - Ssshawnnn

Ba 206 Macroeconomics Final Exam Solution

  • Date Submitted: 10/13/2015 01:50 AM
  • Flesch-Kincaid Score: 48.5 
  • Words: 645
  • Essay Grade: no grades
  • Report this Essay
BA 206 Macroeconomics Final Exam Solution

BA 206 Macroeconomics Final Exam Solution

• Question 1

Barter transactions involve the use of money.

• Question 2

The use of money as a medium of exchange represents the mostimportant service that money renders.

• Question 3

Currency includes demand deposits.

• Question 4

The money supply known as M1 includes all assets that are good storesof value.

• Question 5

A primary tool of the Federal Reserve System is open market operations.

• Question 6

Commercial banks and credit unions create money in concert with theFed.

• Question 7

Providing a secure place for savings is not a major function of financialinstitutions.

• Question 8

The Fed's reserve requirement ratio can reduce the monetary base.

• Question 9

If bankers want to retain reserves of 25% against all deposits, if the Fedissues $100 billion in currency, and if private individuals keep all moneyin banks, then once the banks are fully loaned up, the money supply willconsist of $400 billion in demand deposits.

• Question 10

The Long-run Aggregate Supply Curve that is compatible with the classicalmacroeconomc model is a vertical line at full employment.

• Question 11

When the federal government spends more than it collects, it must issuemore debt or more monetary base.

• Question 12

Keynesians tend to believe that massive tax cuts and new government spending are cures for recession.

• Question 13

There are currently 13 Federal Reserve Districts.

• Question 14

One of the 3 tools of the Federal Reserve is fiscal policy.

• Question 15

Monetary policy of the Federal Reserve affects the monetary base toachieve its goals of rates of inflation and interest.



Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. No comments