Economics Economics Solved MCQs Test 02 Preparation Online 0 Economics Solved MCQs Test 02 Preparation Online 1. The monetary base is composed of ?A. gold and silver B. currency and reserves C. currency and check-able depositsD. currency only Loading... 2. Which of the following is the most liquid ?A. a home B. a savings account C. a 6 month CD D. water Loading... 3. Which of the following IS a function of money ?A. medium of exchange B. unit of accounting C. store of value D. all of the above Loading... 4. 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... 5. If the Federal Reserve wishes to increase the money supply, it should ?A. buy Treasury securities in the open market B. raise the discount rate C. all of the aboveD. raise the reserve requirement Loading... 6. Which of the following is a component of M-1 ?A. goldB. credit card C. savings deposits D. check able deposits Loading... 7. An increase in the money supply will cause interest rates to ?A. rise B. remain unchangedC. None of theseD. fall Loading... 8. 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. it accepts deposits from the public and makes loans to businessesC. it is a system of 12 central banks D. its main policy-making body is the FDIC Loading... 9. 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. $100 B. $1,000 C. $5,000 D. $10,000 Loading... 10. Which of the following is a NOT component of M-2 ?A. stocks B. money market mutual funds C. small time deposits D. checkable deposits Loading... Loading... Related PostsEconomics Solved MCQs Test 01 Preparation OnlineEnglish Literature Solved MCQs Online Test 02English Literature Solved MCQs Online Test 01Nature & Scope on Economics Test 01 Mcqs Preparation OnlineNature & Scope on Economics Test 02 Mcqs Preparation OnlineNature & Scope on Economics Test 03 Mcqs Preparation OnlineNature & Scope on Economics Test 04 Mcqs Preparation OnlineAbout UsEconomics Quiz 04 Preparation OnlineEconomics Quiz 03 Preparation Online Continue Reading Previous Economics Solved MCQs Test 01 Preparation OnlineNext Economics Quiz 01 Preparation Online More Stories Economics Economics Quiz 04 Preparation Online 0 Economics Economics Quiz 03 Preparation Online 0 Economics Economics Quiz 02 Preparation Online 0 Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ
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