100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
ECO 202 Final Exam – Questions And Detailed Answers $9.99   Add to cart

Exam (elaborations)

ECO 202 Final Exam – Questions And Detailed Answers

 7 views  0 purchase
  • Course
  • ECO 202
  • Institution
  • ECO 202

ECO 202 Final Exam – Questions And Detailed Answers

Preview 2 out of 8  pages

  • August 23, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ECO 202
  • ECO 202
avatar-seller
Zendaya
ECO 202 Final Exam – Questions And Detailed Answers

When you walk into a store, you see the price tags marking "$.99", "$100", or
"$14.99". You don't see the price tags with "1 bitcoin", "3 bitcoins", or "100
bitcoins", etc. This illustrates that bitcoins cannot fulfill the Right Ans - unit
of account function

Last year, bitcoins were traded at $1000 a piece. The year before, they were
traded at $20 a piece. Next year, it may be traded at $100,000 a piece. This
illustrates that bitcoins cannot fulfill the Right Ans - store of value function
very well

You own some bitcoins. But you cannot go to One Stop at Miami and pay your
tuition with your bitcoins. This illustrates that bitcoins cannot fulfill the
Right Ans - medium of exchange function

M1 and M2 are called Money Stock Measures because Right Ans - they
measure the amount of money at a specific point in time

According to the footnotes for Table 1, currency stored in commercial banks'
vaults Right Ans - is not a part of money supply

You find a 20 dollar bill in your winter jacket when you clean up your closet.
You then spend the money at Kroger for some groceries. As a result, Right
Ans - currency in circulation stays unchanged because the $20 is already out
in circulation and counted

When a bank receives a new deposit of $5,000 from the public, what might be
the minimum change in money supply? Right Ans - $0

Bank runs might spread to other banks and cause Right Ans - even
financially healthy banks to go under

The Glass-Steagall Act of 1933 Right Ans - created federal deposit
insurance as an important measure for the prevention of bank runs

, Financial intermediaries involved in shadow banking typically Right Ans -
borrow money short term and lend or invest long term

In 2008, when the U.S. financial system collapsed, it led to Right Ans - a
severe cycle of deleveraging and a credit crunch for the economy as a whole

Who is a permanent voting member of the FOMC but not part of the Fed's
Board of Governors? Right Ans - President of New York Fed

"The Fed also eliminated banks' reserve requirement—the percent of deposits
that banks must hold as reserves to meet cash demand—though this is largely
irrelevant because banks currently hold far more than the required reserves."
Which of the following roles of the Fed is NOT illustrated by the quote?
Right Ans - lender of last resort

the first response from the Fed was to cut the Federal Funds Rate to zero. This
is most relevant to the Fed's role as Right Ans - monetary policymaker

the Fed has taken a significant step in lending directly to major non-financial
corporations and the goal is to "allow companies access to credit so that they
are better able to maintain business operations and capacity during the period
of dislocations related to the pandemic". This is most relevant to the Fed's role
as Right Ans - lender of last resort

Monetary base cannot be determined unless Right Ans - we also know the
amount of currency in circulation

Suppose the Fed increases the required reserve ratio from 10% to 100%. As a
result, Right Ans - it is impossible to have bank failures caused by bank
runs

The AD curve shows the relationship between Right Ans - the aggregate
price level and the quantity of aggregate output demanded

Suppose a lower aggregate price level increases the purchasing power of
assets in an economy which causes consumers to spend more. This is known
as Right Ans - the wealth effect and it represents a movement along a fixed
AD curve

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Zendaya. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64438 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$9.99
  • (0)
  Add to cart