ECON102 QUIZ 2 UPDATED Actual Exam Questions and CORRECT Answers
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Course
ECON102
Institution
ECON102
ECON102 QUIZ 2 UPDATED Actual
Exam Questions and CORRECT Answers
FOMC - CORRECT ANSWER- is part of the Federal Reserve System
discount rate. - CORRECT ANSWER- is the interest rate charged by the Federal Reserve
Banks when lending to banks
ECON102 QUIZ 2 UPDATED Actual
Exam Questions and CORRECT Answers
FOMC - CORRECT ANSWER✔✔- is part of the Federal Reserve System
discount rate. - CORRECT ANSWER✔✔- is the interest rate charged by the Federal Reserve
Banks when lending to banks.
open market operations - CORRECT ANSWER✔✔- when the Federal Reserve buys or sells
government securities, it is using the tool of monetary policy known as
excess reserves - CORRECT ANSWER✔✔- if a bank chooses to hold more reserves than
regulations require, we say that the bank is holding
(A+B) changing required reserve ratios, buying or selling securities in the open market -
CORRECT ANSWER✔✔- which of the following qualifies as a potential Federal Reserve
monetary policy action
federal funds rate. - CORRECT ANSWER✔✔- interest rate on short-term loans, between
financial institutions.
repurchase agreements - CORRECT ANSWER✔✔- Federal reserve uses what in
implementing monetary policy, when its objective is to have a temporary effect on bank
reserves
New York City - CORRECT ANSWER✔✔- the "trading desk" where the Federal Reserve's
open market trades are initiated, located in
monetary base - CORRECT ANSWER✔✔- the total of all currency in circulation, outside
banks
seasonal credit program - CORRECT ANSWER✔✔- only for fire emergency situations, as in
the case of a failing depository institution
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