MishkinTBch米什金货币金融学题库5904

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1、The Economics of Money,Banking,and Financial Markets,9e(Mishkin)Chapter 14 The Money Supply Process 14.1 Three Players in the Money Supply Process 1)The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is A)the Federal Rese

2、rve System.B)the United States Treasury.C)the U.S.Gold Commission.D)the House of Representatives.Answer:A Ques Status:Previous Edition 2)Individuals that lend funds to a bank by opening a checking account are called A)policyholders.B)partners.C)depositors.D)debt holders.Answer:C Ques Status:Previous

3、 Edition 3)The three players in the money supply process include A)banks,depositors,and the U.S.Treasury.B)banks,depositors,and borrowers.C)banks,depositors,and the central bank.D)banks,borrowers,and the central bank.Answer:C Ques Status:Revised 4)Of the three players in the money supply process,mos

4、t observers agree that the most important player is A)the United States Treasury.B)the Federal Reserve System.C)the FDIC.D)the Office of Thrift Supervision.Answer:B Ques Status:Revised 14.2 The Feds Balance Sheet 1)Both _ and _ are Federal Reserve assets.A)currency in circulation;reserves B)currency

5、 in circulation;government securities C)government securities;discount loans D)government securities;reserves Answer:C Ques Status:Previous Edition 2)The monetary liabilities of the Federal Reserve include A)government securities and discount loans.B)currency in circulation and reserves.C)government

6、 securities and reserves.D)currency in circulation and discount loans.Answer:B Ques Status:Previous Edition 3)Both _ and _ are monetary liabilities of the Fed.A)government securities;discount loans B)currency in circulation;reserves C)government securities;reserves D)currency in circulation;discount

7、 loans Answer:B Ques Status:Previous Edition 4)The sum of the Feds monetary liabilities and the U.S.Treasurys monetary liabilities is called A)the money supply.B)currency in circulation.C)bank reserves.D)the monetary base.Answer:D Ques Status:Previous Edition 5)The monetary base consists of A)curren

8、cy in circulation and Federal Reserve notes.B)currency in circulation and the U.S.Treasurys monetary liabilities.C)currency in circulation and reserves.D)reserves and Federal Reserve Notes.Answer:C Ques Status:Previous Edition 6)Total reserves minus bank deposits with the Fed equals A)vault cash.B)e

9、xcess reserves.C)required reserves.D)currency in circulation.Answer:A Ques Status:Previous Edition 7)Reserves are equal to the sum of A)required reserves and excess reserves.B)required reserves and vault cash reserves.C)excess reserves and vault cash reserves.D)vault cash reserves and total reserves

10、.Answer:A Ques Status:Previous Edition 8)Total reserves are the sum of _ and _.A)excess reserves;borrowed reserves B)required reserves;currency in circulation C)vault cash;excess reserves D)excess reserves;required reserves Answer:D Ques Status:Revised 9)Excess reserves are equal to A)total reserves

11、 minus discount loans.B)vault cash plus deposits with Federal Reserve banks minus required reserves.C)vault cash minus required reserves.D)deposits with the Fed minus vault cash plus required reserves.Answer:B Ques Status:Previous Edition 10)Total Reserves minus vault cash equals A)bank deposits wit

12、h the Fed.B)excess reserves.C)required reserves.D)currency in circulation.Answer:A Ques Status:Previous Edition 11)The amount of deposits that banks must hold in reserve is A)excess reserves.B)required reserves.C)total reserves.D)vault cash.Answer:B Ques Status:Previous Edition 12)The percentage of

13、deposits that banks must hold in reserve is the A)excess reserve ratio.B)required reserve ratio.C)total reserve ratio.D)currency ratio.Answer:B Ques Status:Previous Edition 13)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,eight million dollars

14、on deposit with the Federal Reserve,and one million dollars in required reserves.Given this information,we can say First National Bank has _ million dollars in excess reserves.A)three B)nine C)ten D)eleven Answer:B Ques Status:Previous Edition 14)Suppose that from a new checkable deposit,First Natio

15、nal Bank holds two million dollars in vault cash,eight million dollars on deposit with the Federal Reserve,and one million dollars in required reserves.Given this information,we can say First National Bank faces a required reserve ratio of _ percent.A)ten B)twenty C)eighty D)ninety Answer:A Ques Sta

16、tus:Previous Edition 15)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,eight million dollars on deposit with the Federal Reserve,and nine million dollars in excess reserves.Given this information,we can say First National Bank has _ million doll

17、ars in required reserves.A)one B)two C)eight D)ten Answer:A Ques Status:Previous Edition 16)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,eight million dollars on deposit with the Federal Reserve,and nine million dollars in excess reserves.Give

18、n this information,we can say First National Bank faces a required reserve ratio of _ percent.A)ten B)twenty C)eighty D)ninety Answer:A Ques Status:Previous Edition 17)Suppose that from a new checkable deposit,First National Bank holds eight million dollars on deposit with the Federal Reserve,one mi

19、llion dollars in required reserves,and faces a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars in excess reserves.A)two B)eight C)nine D)ten Answer:C Ques Status:Previous Edition 18)Suppose that from a new checkable deposit,First Nati

20、onal Bank holds eight million dollars on deposit with the Federal Reserve,one million dollars in required reserves,and faces a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars in vault cash.A)two B)eight C)nine D)ten Answer:A Ques Stat

21、us:Previous Edition 19)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,nine million dollars in excess reserves,and faces a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars in requir

22、ed reserves.A)one B)two C)eight D)ten Answer:A Ques Status:Previous Edition 20)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,nine million dollars in excess reserves,and faces a required reserve ratio of ten percent.Given this information,we can

23、 say First National Bank has _ million dollars on deposit with the Federal Reserve.A)one B)two C)eight D)ten Answer:C Ques Status:Previous Edition 21)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault cash,one million dollars in required reserves,and fac

24、es a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars in excess reserves.A)one B)two C)nine D)ten Answer:C Ques Status:Previous Edition 22)Suppose that from a new checkable deposit,First National Bank holds two million dollars in vault

25、 cash,one million dollars in required reserves,and faces a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars on deposit with the Federal Reserve.A)one B)two C)eight D)ten Answer:C Ques Status:Previous Edition 23)Suppose that from a new

26、checkable deposit,First National Bank holds eight million dollars on deposit with the Federal Reserve,nine million dollars in excess reserves,and faces a required reserve ratio of ten percent.Given this information,we can say First National Bank has _ million dollars in required reserves.A)one B)two

27、 C)nine D)ten Answer:A Ques Status:Previous Edition 24)Suppose that from a new checkable deposit,First National Bank holds eight million dollars on deposit with the Federal Reserve,nine million dollars in excess reserves,and faces a required reserve ratio of ten percent.Given this information,we can

28、 say First National Bank has _ million dollars in vault cash.A)one B)two C)nine D)ten Answer:B Ques Status:Previous Edition 25)The interest rate the Fed charges banks borrowing from the Fed is the A)federal funds rate.B)Treasury bill rate.C)discount rate.D)prime rate.Answer:C Ques Status:Previous Ed

29、ition 26)When banks borrow money from the Federal Reserve,these funds are called A)federal funds.B)discount loans.C)federal loans.D)Treasury funds.Answer:B Ques Status:Previous Edition 14.3 Control of the Monetary Base 1)The monetary base minus currency in circulation equals A)reserves.B)the borrowe

30、d base.C)the nonborrowed base.D)discount loans.Answer:A Ques Status:Previous Edition 2)The monetary base minus reserves equals A)currency in circulation.B)the borrowed base.C)the nonborrowed base.D)discount loans.Answer:A Ques Status:Previous Edition 3)High-powered money minus reserves equals A)rese

31、rves.B)currency in circulation.C)the monetary base.D)the nonborrowed base.Answer:B Ques Status:Previous Edition 4)High-powered money minus currency in circulation equals A)reserves.B)the borrowed base.C)the nonborrowed base.D)discount loans.Answer:A Ques Status:Previous Edition 5)Purchases and sales

32、 of government securities by the Federal Reserve are called A)discount loans.B)federal fund transfers.C)open market operations.D)swap transactions.Answer:C Ques Status:Previous Edition 6)When the Federal Reserve purchases a government bond from a bank,reserves in the banking system _ and the monetar

33、y base _,everything else held constant.A)increase;increases B)increase;decreases C)decrease;increases D)decrease;decreases Answer:A Ques Status:Previous Edition 7)When the Federal Reserve sells a government bond to a bank,reserves in the banking system _ and the monetary base _,everything else held

34、constant.A)increase;increases B)increase;decreases C)decrease;increases D)decrease;decreases Answer:D Ques Status:Previous Edition 8)When a bank sells a government bond to the Federal Reserve,reserves in the banking system _ and the monetary base _,everything else held constant.A)increase;increases

35、B)increase;decreases C)decrease;increases D)decrease;decreases Answer:A Ques Status:Previous Edition 9)When a bank buys a government bond from the Federal Reserve,reserves in the banking system _ and the monetary base _,everything else held constant.A)increase;increases B)increase;decreases C)decrea

36、se;increases D)decrease;decreases Answer:D Ques Status:Previous Edition 10)When the Fed buys$100 worth of bonds from First National Bank,reserves in the banking system A)increase by$100.B)increase by more than$100.C)decrease by$100.D)decrease by more than$100.Answer:A Ques Status:Previous Edition 11

37、)When the Fed sells$100 worth of bonds to First National Bank,reserves in the banking system A)increase by$100.B)increase by more than$100.C)decrease by$100.D)decrease by more than$100.Answer:C Ques Status:Previous Edition 12)If a person selling bonds to the Fed cashes the Feds check,then reserves _

38、 and currency in circulation _,everything else held constant.A)remain unchanged;declines B)remain unchanged;increases C)decline;remains unchanged D)increase;remains unchanged Answer:B Ques Status:Previous Edition 13)The effect of an open market purchase on reserves differs depending on how the selle

39、r of the bonds keeps the proceeds.If the proceeds are kept in _,the open market purchase has no effect on reserves;if the proceeds are kept as _,reserves increase by the amount of the open market purchase.A)deposits;deposits B)deposits;currency C)currency;deposits D)currency;currency Answer:C Ques S

40、tatus:Previous Edition 14)The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds.If the proceeds are kept in currency,the open market purchase _ reserves;if the proceeds are kept as deposits,the open market purchase _ reserves.A)has no e

41、ffect on;has no effect on B)has no effect on;increases C)increases;has no effect on D)decreases;increases Answer:B Ques Status:Previous Edition 15)When an individual sells a$100 bond to the Fed,she may either deposit the check she receives or cash it for currency.In both cases A)reserves increase.B)

42、high-powered money increases.C)reserves decrease.D)high-powered money decreases.Answer:B Ques Status:Previous Edition 16)If a member of the nonbank public sells a government bond to the Federal Reserve in exchange for currency,the monetary base will _,but _.A)remain unchanged;reserves will fall B)re

43、main unchanged;reserves will rise C)rise;currency in circulation will remain unchanged D)rise;reserves will remain unchanged Answer:D Ques Status:Previous Edition 17)If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency,the monetary base will

44、 _,but reserves will _.A)remain unchanged;rise B)remain unchanged;fall C)rise;remain unchanged D)fall;remain unchanged Answer:D Ques Status:Previous Edition 18)For which of the following is the change in reserves necessarily different from the change in the monetary base?A)Open market purchases from

45、 a bank B)Open market purchases from an individual who deposits the check in a bank C)Open market purchases from an individual who cashes the check D)Open market sale to a bank Answer:C Ques Status:Previous Edition 19)When a member of the nonbank public withdraws currency from her bank account,A)bot

46、h the monetary base and bank reserves fall.B)both the monetary base and bank reserves rise.C)the monetary base falls,but bank reserves remain unchanged.D)bank reserves fall,but the monetary base remains unchanged.Answer:D Ques Status:Previous Edition 20)When a member of the nonbank public deposits c

47、urrency into her bank account,A)both the monetary base and bank reserves fall.B)both the monetary base and bank reserves rise.C)the monetary base falls,but bank reserves remain unchanged.D)bank reserves rise,but the monetary base remains unchanged.Answer:D Ques Status:Previous Edition 21)When the Fe

48、d extends a$100 discount loan to the First National Bank,reserves in the banking system A)increase by$100.B)increase by more than$100.C)decrease by$100.D)decrease by more than$100.Answer:A Ques Status:Previous Edition 22)All else the same,when the Fed calls in a$100 discount loan previously extended

49、 to the First National Bank,reserves in the banking system A)increase by$100.B)increase by more than$100.C)decrease by$100.D)decrease by more than$100.Answer:C Ques Status:Previous Edition 23)When the Federal Reserve extends a discount loan to a bank,the monetary base _ and reserves _.A)remains unch

50、anged;decrease B)remains unchanged;increase C)increases;increase D)increases;remain unchanged Answer:C Ques Status:Previous Edition 24)When the Federal Reserve calls in a discount loan from a bank,the monetary base _ and reserves _.A)remains unchanged;decrease B)remains unchanged;increase C)decrease

51、s;decrease D)decreases;remains unchanged Answer:C Ques Status:Previous Edition 25)If the Fed decides to reduce bank reserves,it can A)purchase government bonds.B)extend discount loans to banks.C)sell government bonds.D)print more currency.Answer:C Ques Status:Previous Edition 26)There are two ways i

52、n which the Fed can provide additional reserves to the banking system:it can _ government bonds or it can _ discount loans to commercial banks.A)sell;extend B)sell;call in C)purchase;extend D)purchase;call in Answer:C Ques Status:Previous Edition 27)A decrease in _ leads to an equal _ in the monetar

53、y base in the short run.A)float;increase B)float;decrease C)Treasury deposits at the Fed;decrease D)discount loans;increase Answer:B Ques Status:Previous Edition 28)The monetary base declines when A)the Fed extends discount loans.B)Treasury deposits at the Fed decrease.C)float increases.D)the Fed se

54、lls securities.Answer:D Ques Status:Previous Edition 29)An increase in _ leads to an equal _ in the monetary base in the short run.A)float;decrease B)float;increase C)discount loans;decrease D)Treasury deposits at the Fed;increase Answer:B Ques Status:Previous Edition 30)A decrease in _ leads to an

55、equal _ in the monetary base in the long run.A)float;increase B)float;decrease C)securities;increase D)securities;decrease Answer:D Ques Status:Previous Edition 31)An increase in _ leads to an equal _ in the monetary base in the long run.A)float;increase B)float;decrease C)securities;increase D)secu

56、rities;decrease Answer:C Ques Status:Previous Edition 32)Suppose a person cashes his payroll check and holds all the funds in the form of currency.Everything else held constant,total reserves in the banking system _ and the monetary base _.A)remain unchanged;increases B)decrease;increases C)decrease

57、;remains unchanged D)decrease;decreases Answer:C Ques Status:Previous Edition 33)Suppose your payroll check is directly deposited to your checking account.Everything else held constant,total reserves in the banking system _ and the monetary base _.A)remain unchanged;remains unchanged B)remain unchan

58、ged;increases C)decrease;increases D)decrease;decreases Answer:A Ques Status:Revised 34)The Fed does not tightly control the monetary base because it does not completely control A)open market purchases.B)open market sales.C)borrowed reserves.D)the discount rate.Answer:C Ques Status:Previous Edition

59、35)Subtracting borrowed reserves from the monetary base obtains A)reserves.B)high-powered money.C)the nonborrowed monetary base.D)the borrowed monetary base.Answer:C Ques Status:Previous Edition 36)The relationship between borrowed reserves,the nonborrowed monetary base,and the monetary base is A)MB

60、=MBn-BR.B)BR=MBn-MB.C)BR=MB-MBn.D)MB=BR-MBn.Answer:C Ques Status:Previous Edition 37)Explain two ways by which the Federal Reserve System can increase the monetary base.Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?Answer:The Fed can in

61、crease the monetary base by purchasing government bonds and by extending discount loans.If the person selling the security chooses to keep the proceeds in currency,bank reserves do not increase.Because the Fed cannot control the distribution of the monetary base between reserves and currency,it has

62、less control over reserves than the base.Ques Status:Previous Edition 14.4 Multiple Deposit Creation:A Simple Model 1)When the Fed supplies the banking system with an extra dollar of reserves,deposits increase by more than one dollara process called A)extra deposit creation.B)multiple deposit creati

63、on.C)expansionary deposit creation.D)stimulative deposit creation.Answer:B Ques Status:Previous Edition 2)When the Fed supplies the banking system with an extra dollar of reserves,deposits _ by _ than one dollara process called multiple deposit creation.A)increase;less B)increase;more C)decrease;les

64、s D)decrease;more Answer:B Ques Status:Previous Edition 3)If the required reserve ratio is equal to 10 percent,a single bank can increase its loans up to a maximum amount equal to A)its excess reserves.B)10 times its excess reserves.C)10 percent of its excess reserves.D)its total reserves.Answer:A Q

65、ues Status:Previous Edition 4)In the simple deposit expansion model,if the Fed purchases$100 worth of bonds from a bank that previously had no excess reserves,the bank can now increase its loans by A)$10.B)$100.C)$100 times the reciprocal of the required reserve ratio.D)$100 times the required reser

66、ve ratio.Answer:B Ques Status:Previous Edition 5)In the simple deposit expansion model,if the Fed purchases$100 worth of bonds from a bank that previously had no excess reserves,deposits in the banking system can potentially increase by A)$10.B)$100.C)$100 times the reciprocal of the required reserve ratio.D)$100 times the required reserve ratio.Answer:C Ques Status:Previous Edition 6)In the simple deposit expansion model,if the Fed extends a$100 discount loan to a bank that previously had no ex