1.Which of these could be a reason for a decrease in the demand for loanable funds?

a.

A deterioration in business confidence

b.

Lower expected household income

c.

An increase in expectations about future inflation

d.

2. A decrease in expectations about future inflation

1.When a newly issued bond sells above its face value, it is said to sell

a.

at a discount.

b.

at a premium.

c.

at par value.

d.

below par value.

3. Which of these is the most often used and the most flexible monetary tool used by the Federal Reserve?

a.

Open market operations

b.

Dynamic transactions

c.

Discount window lending

d.

Quantitative easing

4. Which of these is currently true for the chair of the Federal Reserve?

a.

The chair position requires a background in economics or finance; the four-year term is renewable.

b.

The chair position has no formal qualifications; the four-year term is renewable.

c.

The chair position requires a background in banking or finance; the two-year term is nonrenewable.

d.

The chair position is a term of just two years and is nonrenewable.

5.During the Great Recession and immediate post-recession years between 2008 and 2014, what happened to the price level in the United States?

a.

The price level increased slightly.

b.

The price level remained stable.

c.

The price level fell and stayed very low.

d.

The price level fell sharply but then rebounded somewhat.