Economics Solved MCQs Test 02 Preparation Online Shani Malik — May 22, 2018 in Economics • add comment 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. discounts B. federal funds C. reserves D. collateral Loading... 2. Which of the following is the most liquid ?A. a 6 month CD B. a home C. waterD. a savings account Loading... 3. Which of the following IS a function of money ?A. all of the aboveB. medium of exchange C. store of value D. unit of accounting Loading... 4. If the Federal Reserve wishes to increase the money supply, it should ?A. all of the aboveB. raise the discount rate C. buy Treasury securities in the open market D. raise the reserve requirement Loading... 5. The monetary base is composed of ?A. gold and silver B. currency and check-able depositsC. currency only D. currency and reserves Loading... 6. An increase in the money supply will cause interest rates to ?A. fall B. remain unchangedC. rise D. None of these Loading... 7. Which of the following is true about the Federal Reserve System (Fed) ?A. its main policy-making body is the FDIC B. it accepts deposits from the public and makes loans to businessesC. it is a system of 12 central banks D. its Board of Governors is elected by a vote of the people Loading... 8. Which of the following is a NOT component of M-2 ?A. stocks B. checkable depositsC. money market mutual funds D. small time deposits Loading... 9. Which of the following is a component of M-1 ?A. goldB. check able deposits C. savings deposits D. credit card Loading... 10. 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. $100 D. $1,000 Loading... Loading... Related NTS Results Post:Economics Solved MCQs Test 01 Preparation OnlineNature & Scope on Economics Test 04 Mcqs Preparation OnlineNature & Scope on Economics Test 02 Mcqs Preparation OnlineNature & Scope on Economics Test 03 Mcqs Preparation OnlineNature & Scope on Economics Test 01 Mcqs Preparation OnlineEconomics Quiz 01 Preparation OnlineEconomics Quiz 04 Preparation OnlineEconomics Quiz 03 Preparation Online