HomeworkCourseAssignment: ECON 312 Principles of Economics Week 6 Quiz Answers

ECON 312 Week 6 Quiz

(TCO 7) If you place a part of your summer earnings in a savings account, you are using money primarily as a
(TCO 7) Currency held in the vault of First National Bank is
(TCO 7) Answer the question on the basis of the following list of assets:
(TCO 7) Assume the Standard Internet Company negotiates a loan for $5,000 from the Metro National Bank and receives a checkable deposit for that amount in exchange for its promissory note (IOU). As a result of this transaction
(TCO 7) The federal funds market is the market in which
(TCO 7) When a bank loan is repaid, the supply of money
(TCO 7) The transactions demand for money is most closely related to money functioning as a
(TCO 7) The equilibrium rate of interest in the market for money is determined by the intersection of the
(TCO 7) The discount rate is the interest
(TCO 7) In the latter end of 2001 the Fed cut the federal funds rate several times. The Fed’s purpose was to
(TCO 7) Explain what is meant by fractional reserve banking. Relate this to money creation and risk to the bank.
(TCO 7) Identify the four major instruments of monetary policy.

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