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Chapter 14 - Money, Banking, and Financial Institutions
58. The purchasing power of the dollar:
59. During periods of rapid inflation, money may cease to work as a medium of exchange:
60. Stabilizing a nation's price level and the purchasing power of its money can be achieved:
Chapter 14 - Money, Banking, and Financial Institutions
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61. Other things equal, an excessive increase in the money supply will:
62. If P equals the price level expressed as an index number and $V equals the value of the
dollar, then:
Answer the question on the basis of the following table:
Chapter 14 - Money, Banking, and Financial Institutions
63. Refer to the above table. The value of the dollar in year 2 is:
64. Refer to the above table. The value of the dollar in year 3 is:
Chapter 14 - Money, Banking, and Financial Institutions
66. The basic policy-making body in the U.S. banking system is the:
67. The Federal Reserve System was created in:
68. In the U.S. economy the money supply is controlled by the:
Chapter 14 - Money, Banking, and Financial Institutions
69. As it relates to Federal Reserve activities, the acronym FOMC describes the:
70. The Federal Open Market Committee (FOMC) is made up of:
71. The group that sets the Federal Reserve Systems policy on buying and selling government
securities (bills, notes, and bonds) is the:
Chapter 14 - Money, Banking, and Financial Institutions
72. Approximately how many commercial banks are now operating in the United States?
73. Which one of the following is true about the U.S. Federal Reserve System?
74. The Board of Governors of the Federal Reserve has ____ members.
Chapter 14 - Money, Banking, and Financial Institutions
75. The members of the Federal Reserve Board:
76. An important routine function of the Federal Reserve Bank is to:
77. Which of the following statements best describes the twelve Federal Reserve Banks?
Chapter 14 - Money, Banking, and Financial Institutions
78. The seven members of the Board of Governors of the Federal Reserve System are:
79. To say that the Federal Reserve Banks are quasi-public banks means that:
80. Which of the following is the basic economic policy function of the Federal Reserve
Banks?
Chapter 14 - Money, Banking, and Financial Institutions
81. The Federal Reserve System:
82. Research for industrially advanced countries indicates that:
83. Research involving industrially advanced countries suggests that:
Chapter 14 - Money, Banking, and Financial Institutions
84. Commercial banks and thrift institutions:
85. "Subprime mortgage loans" refer to:
86. What are "mortgage-backed securities?"
Chapter 14 - Money, Banking, and Financial Institutions
87. When banks bundled mortgage loans and sold the resulting mortgage-backed securities:
88. Banks lost money during the mortgage default crisis because:
89. In the financial industry, "securitization" refers to:
Chapter 14 - Money, Banking, and Financial Institutions
90. Collateralized default swaps:
91. What does it mean when economists say that home buyers are "underwater" on their
mortgages?
92. The "shadow banking system" refers to:
Chapter 14 - Money, Banking, and Financial Institutions
93. Which of the following statements is true about the high rate of mortgage defaults that
contributed to the financial crisis of 2007 and 2008?
94. Which of the following financial institutions declared bankruptcy as a result of the
financial crisis of 2007 and 2008?
Chapter 14 - Money, Banking, and Financial Institutions
95. Which of the following financial institutions was acquired by Bank of America as a result
of the financial crisis of 2007 and 2008?
96. TARP, created in 2008, stands for:
97. How much did the U.S. Congress allocate to the Troubled Asset Relief Program in 2008?
