Economics Economics Solved MCQs Test 02 Preparation Online Economics Solved MCQs Test 02 Preparation Online 1. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called ?A. collateralB. reserves C. discounts D. federal funds Loading... 2. An increase in the money supply will cause interest rates to ?A. None of theseB. remain unchangedC. rise D. fall Loading... 3. 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. $1,000 B. $100 C. $5,000 D. $10,000 Loading... 4. Which of the following is a component of M-1 ?A. goldB. savings deposits C. check able deposits D. credit card Loading... 5. Which of the following is a NOT component of M-2 ?A. small time deposits B. money market mutual funds C. stocks D. checkable deposits 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 a function of money ?A. store of value B. medium of exchange C. unit of accounting D. all of the above Loading... 8. If the Federal Reserve wishes to increase the money supply, it should ?A. raise the reserve requirement B. buy Treasury securities in the open market C. raise the discount rate D. all of the above Loading... 9. Which of the following is the most liquid ?A. a savings account B. a home C. a 6 month CD D. water Loading... 10. The monetary base is composed of ?A. currency only B. currency and check-able depositsC. gold and silver D. currency and reserves Loading... Loading... Related PostsEconomics Solved MCQs Test 01 Preparation OnlineEnglish Literature Solved MCQs Online Test 01English Literature Solved MCQs Online Test 02Nature & Scope on Economics Test 01 Mcqs Preparation OnlineNature & Scope on Economics Test 02 Mcqs Preparation OnlineNature & Scope on Economics Test 03 Mcqs Preparation Online Continue Reading Previous Economics Solved MCQs Test 01 Preparation OnlineNext Economics Quiz 01 Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ