31.Velocity of money
a.varies inversely with the money supply
b.varies directly with GDP
c.is not under the Fed’s exclusive control
- all of the above
32.Influence of monetary policy on the real sector is
33.Influence of monetary policy on the financial sector is
34.Which of the following was a responsibility of the early Federal Reserve System?
a.to control the money supply
b.to safeguard the national payment system
c.to establish a more rigorous bank supervisory system
d.all of the above
35.The Federal Reserve System established
a.a system for federal chartering of banks.
b.a system for controlling bank note issuance.
c.a source of liquidity for the banking system.
d.the beginning of demand deposit accounts.
36.What items are included in M1?
I. Savings deposits
II. Checking deposits
III. Non-institutional money market mutual funds
VI. Time deposits
a. I, II, III, IV
b. II, V
c. I, V, VI
d. III, IV, VI
37.The discount rate is the rate that
a. Banks charge for loans to corporate customers
b. Banks charge to lend foreign exchange to customers
c. The Federal Reserve charges on loans to commercial banks
d. Banks charge each other on loans of excess reserves
38.A decrease in reserve requirements could lead to a(n)
a. Increase in bank lending
b. Increase in the money supply
c. An decrease in the discount rate
d. All above