Economics Solved MCQs Test 02 Preparation Online Leave a Comment / Economics / By Shani Malik Economics Solved MCQs Test 02 Preparation Online 1. An increase in the money supply will cause interest rates to ?A. remain unchangedB. rise C. None of theseD. fall Loading... 2. Which of the following is a component of M-1 ?A. goldB. savings deposits C. credit card D. check able deposits Loading... 3. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called ?A. reserves B. discounts C. federal funds D. collateral Loading... 4. Which of the following IS a function of money ?A. medium of exchange B. all of the aboveC. store of value D. unit of accounting Loading... 5. If the Federal Reserve wishes to increase the money supply, it should ?A. buy Treasury securities in the open market B. raise the reserve requirement C. all of the aboveD. raise the discount rate Loading... 6. Which of the following is true about the Federal Reserve System (Fed) ?A. its Board of Governors is elected by a vote of the people B. its main policy-making body is the FDIC C. it accepts deposits from the public and makes loans to businessesD. it is a system of 12 central banks Loading... 7. Which of the following is the most liquid ?A. a home B. a 6 month CD C. a savings account D. water Loading... 8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased ?A. $5,000 B. $10,000C. $1,000 D. $100 Loading... 9. The monetary base is composed of ?A. currency and reserves B. currency and check-able depositsC. currency only D. gold and silver Loading... 10. Which of the following is a NOT component of M-2 ?A. small time deposits B. checkable depositsC. money market mutual funds D. stocks Loading... Loading... Related NTS Results Post:Biology Mcqs Test 11 Online PreparationBiology Mcqs Test 10 Online PreparationBiology Mcqs Test 13 Online PreparationBiology Mcqs Test 12 Online PreparationBiology Mcqs Test 14 Online PreparationBiology Mcqs Test 15 Online PreparationIslamiat Mcqs Test 01 Online PreparationIslamiat Mcqs Test 02 Online Preparation
