Econ 102 quiz 4 LATEST QUESTIONS AND ANSWERS

Econ 102 quiz 4 LATEST QUESTIONS AND ANSWERS. Question 1 of 10 10.0/ 10.0 Points The supply of money in the U.S. economy is determined primarily by A. decisions made by the Federal Reserve and the U.S. Treasury. B. the actions of the Federal Reserve and the banking system. C. consumers and the banking system. D. the demand for money in the economy. Answer Key: B Question 2 of 10 10.0/ 10.0 Points One of the essential functions that a bank performs is A. purchasing government bonds. B. creating deposits by lending required reserves. C. transferring money from savers to lenders. D. owning assets like real estate. Answer Key: C Question 3 of 10 10.0/ 10.0 Points At lower interest rates the A. money supply is indeterminate. B. money supply is lower. C. quantity of money demanded is higher. D. quantity of money demanded is lower. Answer Key: C This study source was downloaded by from CourseH on :20:31 GMT -06:00 Question 4 of 10 10.0/ 10.0 Points From time to time, the Federal Reserve buys back government bonds from the private sector through a process called A. bond recall procedures. B. open market purchases. C. backflip bond investments. D. voluntary redemption procedures Answer Key: B