Eco 372 Week 4 Quiz Essay Example
1. Would Henry Hazlitt more likely: A
a. Say we are already suffering the long-run consequences of the policies of the remote or recent past. b. Advocate public or collective ownership and administration of the means of production and distribution of goods. c. Argue for more governmental stimulus to help the economy.
2. Would Henry Hazlitt more likely say: B a. That government should fund public works to maintain full employment. b. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. c. From each according to his ability, to each according to his needs.
4. Changes in the quantity of money affect D
a. interest rates
b. prices
c. production
d. All of the above are correct
5. Which list ranks assets from most to least liquid? B
a. currency, fine art, stocks
b. currency, stocks, fine art
c. fine art, currency, stocks
d. fine art, stocks, currency
6. Fiat money A
a. has no intrinsic value.
b. is backed by gold.
c. has intrinsic value equal to its value in exchange.
d. is any close substitute for currency such as checkable deposits.
7. The agency responsible for regulating the money supply in the United States is C
a. the Comptroller of the Currency.
b. the U.S. Treasury.
c. the Federal Reserve.
d. the U.S. Bank.
8. When the Federal Reserve conducts open-market operations to increase the money supply, it B
a. redeems Federal Reserve notes.
b. buys government bonds from the public.
c. raises the discount rate.
d. decreases its lending to member banks.
9. Which of the following Fed actions would both increase the money supply? B
a. buy bonds and raise the reserve requirement
b. buy bonds and lower the reserve requirement
c. sell bonds and raise the reserve requirement
d. sell bonds and lower
a. Say we are already suffering the long-run consequences of the policies of the remote or recent past. b. Advocate public or collective ownership and administration of the means of production and distribution of goods. c. Argue for more governmental stimulus to help the economy.
2. Would Henry Hazlitt more likely say: B a. That government should fund public works to maintain full employment. b. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. c. From each according to his ability, to each according to his needs.
4. Changes in the quantity of money affect D
a. interest rates
b. prices
c. production
d. All of the above are correct
5. Which list ranks assets from most to least liquid? B
a. currency, fine art, stocks
b. currency, stocks, fine art
c. fine art, currency, stocks
d. fine art, stocks, currency
6. Fiat money A
a. has no intrinsic value.
b. is backed by gold.
c. has intrinsic value equal to its value in exchange.
d. is any close substitute for currency such as checkable deposits.
7. The agency responsible for regulating the money supply in the United States is C
a. the Comptroller of the Currency.
b. the U.S. Treasury.
c. the Federal Reserve.
d. the U.S. Bank.
8. When the Federal Reserve conducts open-market operations to increase the money supply, it B
a. redeems Federal Reserve notes.
b. buys government bonds from the public.
c. raises the discount rate.
d. decreases its lending to member banks.
9. Which of the following Fed actions would both increase the money supply? B
a. buy bonds and raise the reserve requirement
b. buy bonds and lower the reserve requirement
c. sell bonds and raise the reserve requirement
d. sell bonds and lower