SOLVED

51) The monetary base is the sum of A) Federal Reserve notes, coins, and deposits of depository institutions B) currency, travelers’ checks, and checking deposits C) currency D) M1 and M2 52) The monetary base consists of A) the quantity of money. B) the sum of Federal Reserve notes, coins, and depository institutions’ deposits at the Fed. C) demand deposits and vault cash. D) government securities held by the Fed. 53) The monetary base is A) the sum of Federal Reserve notes, coins, and depository institutions’ deposits at the Federal Reserve. B) Federal Reserve notes minus depository institutions’ deposits at the Federal Reserve. C) depository institutions’ deposits at the Federal Reserve minus Federal Reserve notes. D) the money borrowed by banks from other banks. 54) The monetary base does NOT include A) Federal Reserve notes. B) reserves of depository institutions. C) checking accounts at commercial banks. D) commercial banks’ reserves. 55) Which of the following is NOT part of the monetary base? A) Federal Reserve notes B) reserves of depository institutions at the Fed C) the public’s checking deposits at commercial banks D) coins 56) The sum of Federal Reserve notes, coins, and depository institutions’ reserves is the ________. A) reserves of the Fed B) assets of the Fed C) monetary base D) liabilities of the Fed 57) Which of the following is NOT a part of the monetary base? A) Chemical Bank’s deposits of reserves at the Fed B) First Bank’s required reserves held at the Federal Reserve C) Federal Reserve notes D) U.S. government securities owned by the Fed 58) Which of the following is a tool that is used by the Fed to control the quantity of money? A) open market operations B) excess reserves C) government expenditure multiplier D) real interest rate 59) Which of the following is NOT a monetary policy tool of the Federal Reserve? A) changes in required reserves B) last resort loans C) deposit insurance D) open market operations 60) Which of the following is NOT one of the Fed’s monetary policy tools? A) last resort loans B) the required reserve ratio C) the income tax rate D) buying and selling U.S. government securities