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8/14/2019 Click Here to Save Answer & Move
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Question # 4 of 20 ( Start time: 08:04:44PM )
Total Marks: 1
The monetary liabilities of the Federal Reserve include:
Select correct option:
Government securities and discount loans
Currency in circulation and reserves
Government securities and reserves
Currency in circulation and reserves
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Question # 5 of 20 ( Start time: 08:06:12PM )
Total Marks: 1
Banking is risky because __________.
Select correct option:
Depository institutions are highly leveraged
Banks do in all the lines of banking trades
Banks pay less for the deposits
All of the given options
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Currency-to-deposit ratio is a factor that affects the quantity of money. This factor iscontrolled by which of the following?
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Central bank
Bank regulators
Commercial banks
Non bank public
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Question # 7 of 20 ( Start time: 08:07:59PM )
Total Marks: 1
One argument for an independent central bank is:
Select correct option:
Without independence competent people would not take a position in a central bank
Successful monetary policy requires a long time horizon usually well beyond the nextelection of most public officials
Politicians have a long-run focus that is not well tuned to addressing economicproblems
Central bankers have a short run focus that usually corrects problems faster
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Question # 8 of 20 ( Start time: 08:09:21PM )
Total Marks: 1
Liquidity is the risk that is arises as a result of which one of the following consequences?
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It arises when loan is not repaid
It arises because of sudden demands of funds
It arises when two sides of the balance sheet do not match up
It arises when banks make additional profit by using derivatives
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Question # 11 of 20 ( Start time:08:12:08 PM )
Total Marks: 1
Which of the following type/s of transaction/s affect the balance sheets of both the centralbank and the banking system?
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An open market operation
A foreign exchange intervention
Central banks extension of a discount loan
All of the given options
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Question # 13 of 20 ( Start time:08:13:38 PM )
Total Marks: 1
If a member of the non-bank public purchases a government bond from the Fed with currency:
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Reserves will fall
The monetary base will fall
Reserves will remain unchanged
Monetary base will fall and reserves will remain unchanged
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Question # 14 of 20 ( Start time:08:15:03 PM )
Total Marks: 1
Which one of the following is NOT true for the expectation hypothesis?
Select correct option:
Risk free interest rate can be computed
There is uncertainty in the future
Identifying yield of bond today that will be available next year
It focuses on risk free interest rate and the risk premium
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Question # 16 of 20 ( Start time:08:17:55 PM )
Total Marks: 1
One thing that is true about economic policy in the U.S. is:
Select correct option:
Monetary and Fiscal policy often times conflict
Fiscal and monetary policy never conflict
Monetary policy ultimately controls fiscal policy since the Fed controls the moneysupply
Fiscal policy ultimately controls monetary policy since Congress can control the Fed'sbudget
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Question # 17 of 20 ( Start time:08:19:18 PM )
Total Marks: 1
The Segmented Markets Theory of term structure suggests that:
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Investors have strong preferences for bonds of a particular maturity
Investors have no preference for short-term bonds over long-term bonds, or viceversa
Interest rates on long-term bonds strongly influence the demand for short-term bonds
Bonds of different maturities are perfect substitutes for each other
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Question # 19 of 20 ( Start time:08:21:23 PM )
Total Marks: 1
The reason for the government to get involved in the financial system is to:
Select correct option:
Protect investors
Ensure the stability of the financial system
Protect bank customers from monopolistic exploitation
All of the given options
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