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ECON 200 UOFA Final Exam Version 1 Newest 2025/
2026 Complete 100 Questions And Correct Answers
(Verified Answers) |Already Graded A+||Newest
Exam!!!
29. If traveler's checks were $1000 higher and saving
deposits were $500 higher, M1 would be
a. $500 higher and M2 would be $1,500 higher.
b. $1,000 higher and M2 would be $1,500 higher.
c. M2 and M1 would be $1,500 higher.
d. $1,000 high and M2 would be $500 higher. - ANSWER-
B
30. John and Jane decide to go on a vacation. As a result,
they withdraw $2,500 from their savings account to
purchase$2,500 worth of traveler's checks. As a result of
these changes,
a. M1 increases by $2,500 and M2 decreases by $2,500.
b. M1 increases by $2,500 and M2 stays the same.
c. M1 and M2 stay the same.
d. M1 decreases by $2,500 and M2 increases by $2,500. -
ANSWER-B
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1. An open-market purchase
a. increases the number of dollars and the number of
bonds in the hands of the public.
b. increases the number of dollars in the hands of the
public and decreases the number of bonds in the hands of
the public.
c. decreases the number of dollars and the number of
bonds in the hands of the public.
d. decreases the number of dollars in the hands of the
public and increases the number of bonds in the hands of
the public. - ANSWER-B
32. An open-market sale
a. increases the number of dollars and the number of
bonds in the hands of the public.
b. increases the number of dollars in the hands of the
public and decreases the number of bonds in the hands of
the public.
c. decreases the number of dollars and the number of
bonds in the hands of the public.
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d. decreases the number of dollars in the hands of the
public and increases the number of bonds in the hands of
the public. - ANSWER-D
33. A bank's reserve ratio is 10 percent and the bank has
$5,000 in deposits. Its reserves amount to
a. $50.
b. $500.
c. $4,500.
d. $4,950. - ANSWER-B
34. A bank's reserve ratio is 5 percent and the bank has
$2,280 in reserve. Its deposits amount to
a. $114.
b. $2,166.
c. $2,400.
d. $45,600. - ANSWER-D
.35. If a bank that desires to hold no excess reserves and
has just enough reserves to meet the required reserve
ratio of15 percent receives a deposit of $600, it has a
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a. $600 increase in excess reserves and no increase in
required reserves.
b. $600 increase in required reserves and no increase in
excess reserves.
c. $510 increase in excess reserves and a $90 increase in
required reserves.
d. $90 increase in excess reserves and a $510 increase in
required reserves.36. - ANSWER-C
45. When the Fed buys government bonds
a. the money supply increases and the federal funds rate
increases.
b. the money supply increases and the federal funds rate
decreases.
c. the money supply decreases and the federal funds rate
increases.
d. the money supply decreases and the federal funds rate
decreases. - ANSWER-C
46. If the federal funds rate were below the level the
Federal Reserve had targeted, the Fed could move the
rate back towards its target by
ECON 200 UOFA Final Exam Version 1 Newest 2025/
2026 Complete 100 Questions And Correct Answers
(Verified Answers) |Already Graded A+||Newest
Exam!!!
29. If traveler's checks were $1000 higher and saving
deposits were $500 higher, M1 would be
a. $500 higher and M2 would be $1,500 higher.
b. $1,000 higher and M2 would be $1,500 higher.
c. M2 and M1 would be $1,500 higher.
d. $1,000 high and M2 would be $500 higher. - ANSWER-
B
30. John and Jane decide to go on a vacation. As a result,
they withdraw $2,500 from their savings account to
purchase$2,500 worth of traveler's checks. As a result of
these changes,
a. M1 increases by $2,500 and M2 decreases by $2,500.
b. M1 increases by $2,500 and M2 stays the same.
c. M1 and M2 stay the same.
d. M1 decreases by $2,500 and M2 increases by $2,500. -
ANSWER-B
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1. An open-market purchase
a. increases the number of dollars and the number of
bonds in the hands of the public.
b. increases the number of dollars in the hands of the
public and decreases the number of bonds in the hands of
the public.
c. decreases the number of dollars and the number of
bonds in the hands of the public.
d. decreases the number of dollars in the hands of the
public and increases the number of bonds in the hands of
the public. - ANSWER-B
32. An open-market sale
a. increases the number of dollars and the number of
bonds in the hands of the public.
b. increases the number of dollars in the hands of the
public and decreases the number of bonds in the hands of
the public.
c. decreases the number of dollars and the number of
bonds in the hands of the public.
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d. decreases the number of dollars in the hands of the
public and increases the number of bonds in the hands of
the public. - ANSWER-D
33. A bank's reserve ratio is 10 percent and the bank has
$5,000 in deposits. Its reserves amount to
a. $50.
b. $500.
c. $4,500.
d. $4,950. - ANSWER-B
34. A bank's reserve ratio is 5 percent and the bank has
$2,280 in reserve. Its deposits amount to
a. $114.
b. $2,166.
c. $2,400.
d. $45,600. - ANSWER-D
.35. If a bank that desires to hold no excess reserves and
has just enough reserves to meet the required reserve
ratio of15 percent receives a deposit of $600, it has a
, 4|Page
a. $600 increase in excess reserves and no increase in
required reserves.
b. $600 increase in required reserves and no increase in
excess reserves.
c. $510 increase in excess reserves and a $90 increase in
required reserves.
d. $90 increase in excess reserves and a $510 increase in
required reserves.36. - ANSWER-C
45. When the Fed buys government bonds
a. the money supply increases and the federal funds rate
increases.
b. the money supply increases and the federal funds rate
decreases.
c. the money supply decreases and the federal funds rate
increases.
d. the money supply decreases and the federal funds rate
decreases. - ANSWER-C
46. If the federal funds rate were below the level the
Federal Reserve had targeted, the Fed could move the
rate back towards its target by
