Table 14.1-Monetary data Item Amount Cash held by public Transactions account ba
ID: 2444198 • Letter: T
Question
Table 14.1-Monetary data Item Amount Cash held by public Transactions account balances $800 billion Required reserves Excess reserves U.S. Treasury bonds held by the S600 billion $120 billion $80 billion $0 billion Lpublic Considering only the information in Table 14.1, the basic money supply is: O $1 trillion. O$800 billion. O $920 billion O $120 billion. QUESTION 7 Which of the following is not a monetary policy tool for shifting the aggregate demand curve? O The reserve requirement. OThe discount rate Open-market operations O Government spending.Explanation / Answer
Ans : The basic money supply is $920 billion
7. Ans : Government policy
Explanation :
The reserve requirement , the discount rate and open market operation are the tools of monetary policy whereas government spending is a tool of fiscal policy .
8. Ans: Sell ; reduce
9. Ans: Discount Rate
Explanation :
Discount rate is the rate at which the Fed lends loans to other banks.
10. Ans: Equilibrium price level should increase and equilibrium output should stay constant.
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