Economics of Money, Banking, and Financial Markets, 12e (Mishkin)

Chapter 14   The Money Supply Process

14.1   Three Players in the Money Supply Process

1) The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is

A) the Federal Reserve System.

B) the United States Treasury.

C) the U.S. Gold Commission.

D) the House of Representatives.

Answer:  A

Ques Status:  Previous Edition

AACSB:  Reflective Thinking

2) Individuals that lend funds to a bank by opening a checking account are called

A) policyholders.

B) partners.

C) depositors.

D) debt holders.

Answer:  C

Ques Status:  Previous Edition

AACSB:  Reflective Thinking

3) The three players in the money supply process include

A) banks, depositors, and the U.S. Treasury.

B) banks, depositors, and borrowers.

C) banks, depositors, and the central bank.

D) banks, borrowers, and the central bank.

Answer:  C

Ques Status:  Previous Edition

AACSB:  Reflective Thinking

4) Of the three players in the money supply process, most observers agree that the most important player is

A) the United States Treasury.

B) the Federal Reserve System.

C) the FDIC.

D) the Office of Thrift Supervision.

Answer:  B

Ques Status:  Previous Edition

AACSB:  Reflective Thinking