Fractional-reserve Banking and Answer Selected Answer
Question 1
10 out of 10 points
The primary responsibility of the Federal Open Market Committee (FOMC) is to
Answer
Selected Answer: establish a level and growth of the money supply through open market operations to produce a stable economic environment.
Correct Answer: establish a level and growth of the money supply through open market operations to produce a stable economic environment.
Question 2
10 out of 10 points
Unlike the United States, many countries grant their banks the authority for
Answer
Selected Answer: full merchant banking, including investment banking and ownership of companies to which they lend.
Correct Answer: full merchant banking, including investment banking and ownership of companies to which they lend.
Question 3
0 out of 10 points
The Federal Reserve System established
Answer
Selected Answer: a system for controlling bank note issuance.
Correct Answer: a source of liquidity for the banking system.
Question 4
0 out of 10 points
Federal deposit insurance has
Answer
Selected Answer: prevented bank panic and bank failures.
Correct Answer: prevented bank depositor panics, but not bank failures.
Question 5
10 out of 10 points
The major federal regulator of mutual funds is the
Answer
Selected Answer: Securities and Exchange Commission.
Correct Answer: Securities and Exchange Commission.
Question 6
10 out of 10 points
All else equal, a decrease in reserve requirements will cause
Answer
Selected Answer: excess reserves to increase.
Correct Answer: excess reserves to increase.
Question 7
10 out of 10 points
A fractional reserve banking system might be in trouble if
Answer
Selected Answer: all deposit customers wanted to withdraw their money.
Correct Answer: all deposit customers wanted to
10 out of 10 points
The primary responsibility of the Federal Open Market Committee (FOMC) is to
Answer
Selected Answer: establish a level and growth of the money supply through open market operations to produce a stable economic environment.
Correct Answer: establish a level and growth of the money supply through open market operations to produce a stable economic environment.
Question 2
10 out of 10 points
Unlike the United States, many countries grant their banks the authority for
Answer
Selected Answer: full merchant banking, including investment banking and ownership of companies to which they lend.
Correct Answer: full merchant banking, including investment banking and ownership of companies to which they lend.
Question 3
0 out of 10 points
The Federal Reserve System established
Answer
Selected Answer: a system for controlling bank note issuance.
Correct Answer: a source of liquidity for the banking system.
Question 4
0 out of 10 points
Federal deposit insurance has
Answer
Selected Answer: prevented bank panic and bank failures.
Correct Answer: prevented bank depositor panics, but not bank failures.
Question 5
10 out of 10 points
The major federal regulator of mutual funds is the
Answer
Selected Answer: Securities and Exchange Commission.
Correct Answer: Securities and Exchange Commission.
Question 6
10 out of 10 points
All else equal, a decrease in reserve requirements will cause
Answer
Selected Answer: excess reserves to increase.
Correct Answer: excess reserves to increase.
Question 7
10 out of 10 points
A fractional reserve banking system might be in trouble if
Answer
Selected Answer: all deposit customers wanted to withdraw their money.
Correct Answer: all deposit customers wanted to