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Money and Banking 2e Croushore – All Chapters – Perfect Solution
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Chapter 1—Introduction to Money and Banking
MULTIPLE CHOICE
1. Economic policy affects
a. | only the amount of money in the economy. |
b. | how banks operate and only banks. |
c. | the entire financial system. |
d. | how financial securities are traded and no other part of the financial system. |
ANS: PTS: 1 DIF: Basic
TOP: Introduction to Money and Banking TYP: Factual
2. A financial policymaker not mentioned in Chapter 1 is the
a. | Securities and Exchange Commission (SEC). |
b. | Federal Deposit Insurance Corporation (FDIC). |
c. | Consumer Financial Protection Bureau (CFPB). |
d. | Federal Reserve System (the Fed). |
ANS: PTS: 1 DIF: Basic
TOP: Introduction to Money and Banking TYP: Factual
3. The policymaking institution that determines the money supply, sets the rules for how checks are cleared and how banks obtain new currency, and determines what activities banks may or may not engage in and whether banks are operating in a prudent fashion is the
a. | Treasury Department. |
b. | Commerce...