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BNAD 301 FINAL EXAM (ALL ANSWERED)
Question : The current Fed chair is: (A) Bernanke (B) Greenspan (C) Mnuchin (D) Powell (E) Volcker (AB) Yellen
Correct answer: D
Question : If the nominal interest rate is 5%, and the inflation
rate is 2%, then the real rate of interest
is:
(A) -3%. (D) 5%.
(B) 2%. (E) 7%.
(C) 3%. (AB) 10%
Correct answer: C
Question : Who receives the excess profits that the Federal
Reserve Bank earns from printing money?
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(A) The Fed chair.(B) The U.S. Treasury.(C) The Social Security Trust Fund.(D) The private banks who choose to be members of the Federal Reserve system.(E) No one; the Federal Reserve Bank rarely earns a net profit.(AB) No one; statute requires that any profits be spent to increase the gold reserves of the U.S.government.
Correct answer: B
Question : The Fed chair during the Great Recession was: (A) Bernanke (B) Greenspan (C) Mnuchin (D) Powell (E) Volcker (AB) Yellen
Correct answer: A
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Question : What is the Federal Reserve's current inflation target?
(A) 1%. (D) 4%.
(B) 2%. (E) 5%.
(C) 3%. (AB) 6%
Correct answer: B
Question : Members of the Federal Reserve Board of Governors
are appointed for terms of _____ years.(A) Two.(B) Four.(C) Six.(D) Ten.(E) Fourteen.(AB) unlimited; they are lifetime appointments.
Correct answer: E
Question : The Federal Reserve's usual monetary policy ______
the fluctuations in unemployment and ______ the fluctuations in interest rates.
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(A) increases; increases.(B) increases; decreases.(C) decreases; increases.(D) decreases; decreases.
Correct answer: C
Question : If the Federal Reserve Bank wants to stimulate
economic activity, then it generally tries to ______ corporate investment by ______ interest rates.(A) increase; increasing.(B) increase; decreasing.(C) decrease; increasing.(D) decrease; decreasing.
Correct answer: B
Question : Which of the following events shifts the net demand
for loans (or borrowing)? (Mark all that apply.) (A) The interest rate rises.(B) Consumers increase their credit card debt.