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Adelphi University/Devry
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Adelphi University
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ECO 100 Week 9 Knowledge Check 9
•Question 1
Which of the following institutions determines the quantity of money in the economy as its most important task?
•Question 2
If a Central Bank desires to reduce the quantity of money in the economy, it can:
•Question 3
When the Central Bank decides to increase the discount rate, the:
•Question 4
The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the _____________.
•Question 5
When the Central Bank lowers the reserve requirement on deposits:
•Question 6
When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
•Question 7
When banks hold excess reserves because they don't see good lending opportunities:
•Question 8
What term is used to describe the interest rate charged by the Central Bank when it makes loans to commercial banks?
•Question 9
When the Federal Reserve announces that it is implementing a new interest rate policy, the ____________________ will be affected.
•Question 10
Atlantic Bank is required to hold 10% of deposits as reserves. If the Central Bank increases the discount rate, how would Atlantic Bank respond?
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