Question

Question text

The New York Federal Reserve Bank

Select one:

a. president always gets to vote at the FOMC meetings.

b. is one of 12 regional Federal Reserve Banks.

c. conducts open market transactions.

d. All of the above are correct.

Question text

The following table contains some production possibilities for an economy for a given month.

Sweaters	Gloves
4	300
6	?
8	100

If the production possibilities frontier is a straight line, then "?" must be

Select one:

a. 150.

b. 100.

c. 200.

d. 250.

Question text

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams

Select one:

a. to shift leftward.

b. to become flatter.

c. to shift rightward.

d. to remain unchanged.

Question text

Suppose that banks desire to hold no excess reserves. If the reserve requirement is 5 percent and a bank receives a new deposit of $400, it

Select one:

a. must increase required reserves by $20.

b. will initially see reserves increase by $400.

c. will be able to use this deposit to make new loans amounting to $380.

d. All of the above are correct.

Answer 1

1 - Option D

All of the above

It is one of the 12 established federal banks and controls the monetary policies which includes open market operations.

2 - Option C

200

If the curve is a straight line , the difference between each value will be equal.

3 - Option C

To shift rightward

The supply is directly proportional to price. Thus with rise in price , the supply will shift to right.

4 - Option B

Will initially see reserves increase by $ 400