Q1. If a monetary policy is focused on combating inflation, which open market actions by the Federal Reserve will most effectively accomplish this? A) Sell Treasury securities, causing aggregate demand to decrease. B) Purchase Treasury securities, causing aggregate demand to decrease. C) Sell Treasury securities, causing aggregate demand to increase.
Q2. Which of the following statements concerning monetary policy is most likely to be accurate? Monetary policy changes affect the economy: A) by stimulating or dampening aggregate supply. B) as soon as they are announced. C) with a significant lag.
Q3. Which of the following statements regarding the monetary policy transmission mechanism is most accurate? A) Central banks can control long-term interest rates directly because decisions by consumers and businesses are based on these rates. B) Central banks can control short-term interest rates by increasing the money supply to increase interest rates or by decreasing the money supply to decrease interest rates. C) Central banks can control short-term interest rates directly, but long-term interest rates are beyond their control.
Q4. Silvano Jimenez, an analyst at Banco del Rey, is reviewing recent actions taken by the U.S. Federal Reserve (the Fed) in setting monetary policy. Recently, the Fed decided to increase the money supply, which has resulted in a decrease in real interest rates. At a staff meeting, Jimenez brings this matter to the attention of his colleagues and makes the following statements: Statement 1: Although the money supply increase has led to a decrease in real interest rates, we should begin to see U.S. investors decrease their investments abroad and the U.S. dollar will appreciate in the foreign exchange market. Statement 2: The Fed’s increase in the money supply will increase the amount of imports into the U.S. Are Statement 1 and Statement 2 as made by Jimenez CORRECT? Statement 1 Statement 2
A) Correct Incorrect B) Incorrect Incorrect C) Incorrect Correct
Q5. The open market sale of Treasury securities by the Federal Reserve is least likely to result in: A) increased longer-term interest rates. B) a decreased rate of inflation. C) increased exports of U.S. goods.
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发表于 2009-1-15 16:50
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