322-12

If the currency deposit ratio is equal to 1.15, then a household's wish would be to maintain $1.15 for every one dollar they maintain in their 401(k).  

A) True  
B) False

The currency deposit ratio is used to determine the money multiplier.  

A) True  
B) False

Money may be used to store purchasing power; defined this way, it includes savings accounts from the money supply definition.  

A) True  
B) False

The power to regulate the quantity and value of money has been delegated by Congress to the Federal Reserve.  

A) True  
B) False

If the central bank raises interest rates, there will be an expansion of the economy.  

A) True  
B) False

The desire of households to maintain a desired balance between the currency they hold and their checking accounts is called the:  

A) transaction deposit.  
B) currency-deposit ratio.  
C) transaction currency.  
D) all of the above  
E) none of the above

According to your text, the functions of central banks usually include:  

A) control of the money supply.  
B) stabilization of the money and capital markets.  
C) maintaining and improving a nation's payment mechanism.  
D) all of the above  
E) none of the above

The national economic goal of reasonable stability in the general price level for all goods and services tends to conflict, according to your text, with the goal of:  

A) stable conditions in the financial markets.  
B) an improved balance-of-payments position.  
C) stability of the global markets.  
D) rising nominal income and government tax collections.  
E) none of the above

Central banks can exercise influence on conditions in the economy and financial system via the:  

A) credit channel.  
B) import/export (trade balance) channel.  
C) PBS channel.  
D) all of the above  
E) A and C only

______________________ appear(s) to be becoming the most popular monetary policy tool around the globe.  

A) Initial public offerings (IPOs)  
B) Open pit operations  
C) Pegging currency to the U.S. dollar  
D) all of the above  
E) none of the above