Question

Name TRUE/FALSE. Write T if the statement is true and 'F' if the statement is false. 1) The tools of monetary policy are open market operations, the discount rate, and 1) the reserve ratio. 2) Active policy making refers to actions taken by policy makers in response to or in anticipation of some change in the overall economy. 2) 3) The Federal Deposit Insurance Corporation insures the value of stocks purchased at banks and savings and loans. 3) 4) The interest rate that the Federal Reserve charges for reserves that it lends to member banks is known as the discount rate. 4) 5) The velocity of money indicates the timber of times per year a dollar is spent on final goods and services. 5) 6) The primary motivation for private foreign investment in developing nations is to eradicate poverty. 6) 7) If the Fed wants to target interest rates, it must give up trying to control the money supply. 7) 8) Sweep accounts are a hybrid of a checking and a savings/money market deposit 8) account. 9) The Board of Governors of the Federal Reserve System is composed of 12 members of the Senate and the U.S. House of Representatives. 9) 10) When the Phillips curve was first used in economics, many economists believed that the government could fine-tune the economy and pick the most preferred combination of unemployment and inflation. 10)

          Name
TRUE/FALSE. Write T if the statement is true and 'F' if the statement is false.
1) The tools of monetary policy are open market operations, the discount rate, and 1)
the reserve ratio.
2) Active policy making refers to actions taken by policy makers in response to or
in anticipation of some change in the overall economy.
2)
3) The Federal Deposit Insurance Corporation insures the value of stocks
purchased at banks and savings and loans.
3)
4) The interest rate that the Federal Reserve charges for reserves that it lends to
member banks is known as the discount rate.
4)
5) The velocity of money indicates the timber of times per year a dollar is spent
on final goods and services.
5)
6) The primary motivation for private foreign investment in developing nations is
to eradicate poverty.
6)
7) If the Fed wants to target interest rates, it must give up trying to control the
money supply.
7)
8) Sweep accounts are a hybrid of a checking and a savings/money market deposit 8)
account.
9) The Board of Governors of the Federal Reserve System is composed of 12
members of the Senate and the U.S. House of Representatives.
9)
10) When the Phillips curve was first used in economics, many economists believed
that the government could fine-tune the economy and pick the most preferred
combination of unemployment and inflation.
10)

Name
TRUE/FALSE. Write T if the statement is true and 'F' if the statement is false.
1) The tools of monetary policy are open market operations, the discount rate, and 1)
the reserve ratio.
2) Active policy making refers to actions taken by policy makers in response to or
in anticipation of some change in the overall economy.
2)
3) The Federal Deposit Insurance Corporation insures the value of stocks
purchased at banks and savings and loans.
3)
4) The interest rate that the Federal Reserve charges for reserves that it lends to
member banks is known as the discount rate.
4)
5) The velocity of money indicates the timber of times per year a dollar is spent
on final goods and services.
5)
6) The primary motivation for private foreign investment in developing nations is
to eradicate poverty.
6)
7) If the Fed wants to target interest rates, it must give up trying to control the
money supply.
7)
8) Sweep accounts are a hybrid of a checking and a savings/money market deposit 8)
account.
9) The Board of Governors of the Federal Reserve System is composed of 12
members of the Senate and the U.S. House of Representatives.
9)
10) When the Phillips curve was first used in economics, many economists believed
that the government could fine-tune the economy and pick the most preferred
combination of unemployment and inflation.
10)

Added by Nathaniel T.

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