Business

1The main reason that U.S. currency cannot be turned in to the government in exchange for a tangible asset such as gold is that:
A)This gives the government more freedom to manage the nation's money supply
B)People prefer tangible items, so the government would not be able to satisfy demand for the tangible item at any fixed rate of exchange
C)Government officials enjoy acquiring assets and don't want to lose anything tangible
D)U.S. currency is the debt of the Federal Reserve Banks
2)Which of the following describe a common cause of bank panics? Check all that apply.
A)Bank regulators are bureaucrats who do not keep up with real-world banking issues.
B)Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality.
C) Bank executives are not trained in risk management.
3)Which of the following are reasons why bank panics were largely eliminated after 1933? Check all that apply.
A)State-chartered banks are freer from the Fed's regulations.
B)The Fed and other government agencies continuously monitor the financial condition of banks.
C) The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
4)A bank's required reserve ratio is equal to:
A)Checkable Deposits / Required Reserves
B)Net Worth / Assets
C)Required Reserves / Checkable Deposits
D)Loans / Checkable Deposits


Answers

cupcake2d

2 years ago Comment

The correct answer for the question that is being presented above is this one: 
(1) B)People prefer tangible items, so the government would not be able to satisfy demand for the tangible item at any fixed rate of exchange
(2) B)Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality.
(3) C) The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
(4) A)Checkable Deposits / Required Reserves