ECO 312 Week 8 Final Exam

ECO 312 Week 8 Final Exam

1. (TCO 7) Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?

2. (TCO 7) Which of the following “backs” the value of money in the United States?

3. (TCO 7) The Federal Reserve System consists of which of the following?

4. (TCO 7) When the Fed acts as a “lender of last resort”, like it did in the financial crisis of 2007-2008, it is performing its role of

5. (TCO 7) Other things being equal, an expansion of commercial bank lending

6. (TCO 7) The difference between Fed behavior during the Bank Panics of 1930-1933 and the Financial Crisis of 2007-2008 is that the Fed

7. (TCO 7) Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?

8. (TCO 7) The most frequently used monetary device for achieving price stability is:

9. (TCO 8) Which country is the United States’ largest trading partner in terms of volume of trade?

10. (TCO 8) Nation X has a comparative advantage in the production of a product compared to Nation Y when

11. (TCO 8) If a nation imposes a tariff on an imported product, then the nation will experience a(n)

12. (TCO 8) If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of

13. (TCO 8) Tariffs and import quotas would benefit the following groups, except

14. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade?

15. (TCO 9) French and German farmers wanting to buy equipment from an American manufacturer based in the U.S. will be

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1. (TCO 9) Which of the following appears as a positive item on the balance of payments account for the United States?

2. (TCO 9) Comparing everything that the United States owes to other nations, and what they owe to the United States, the United States is currently a(n)

3. (TCO 9) Foreign exchange rates refer to the (Points : 4)

4. (TCO 9) If the exchange rate is $1 = 0.7841 euro, then a French DVD priced at 20 euros would cost an American buyer (excluding taxes and other fees)

5. (TCO 9) Proponents of the managed floating exchange rate system argue that it has

6. (TCO 8) a) Define the four basic types of trade barriers. b) Who gains and who loses from a protective tariff? Explain.

7. (TCO 6) a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem of inflation?