Economics 312 final exam answers

ECO 312 Week 8 Final Exam

1. (TCO 7) Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange? (Points : 4)

2. (TCO 7) Which of the following "backs" the value of money in the United States? (Points : 4)

3. (TCO 7) The Federal Reserve System consists of which of the following? (Points : 4)

4. (TCO 7) When the Fed acts as a "lender of last resort", like it did in the financial crisis of 2007-2008, it is performing its role of (Points : 4)

5. (TCO 7) Other things being equal, an expansion of commercial bank lending (Points : 4)

6. (TCO 7) The difference between Fed behavior during the Bank Panics of 1930-1933 and the Financial Crisis of 2007-2008 is that the Fed (Points : 4)

7. (TCO 7) Which one of the following is a tool of monetary policy for altering the reserves of commercial banks? (Points : 4)

8. (TCO 7) The most frequently used monetary device for achieving price stability is: (Points : 4)

9. (TCO 8) Which country is the United States' largest trading partner in terms of volume of trade? (Points : 4)

10. (TCO 8) Nation X has a comparative advantage in the production of a product compared to Nation Y when (Points : 4)

11. (TCO 8) If a nation imposes a tariff on an imported product, then the nation will experience a(n) (Points : 4)

12. (TCO 8) If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of (Points : 4)

13. (TCO 8) Tariffs and import quotas would benefit the following groups, except (Points : 4)

14. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade? (Points : 4)

15. (TCO 9) French and German farmers wanting to buy equipment from an American manufacturer based in the U.S. will be (Points : 4)

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1. (TCO 9) Which of the following appears as a positive item on the balance of payments account for the United States? (Points : 4)

2. (TCO 9) Comparing everything that the United States owes to other nations, and what they owe to the United States, the United States is currently a(n) (Points : 4)

3. (TCO 9) Foreign exchange rates refer to the (Points : 4)

4. (TCO 9) If the exchange rate is $1 = 0.7841 euro, then a French DVD priced at 20 euros would cost an American buyer (excluding taxes and other fees) (Points : 4)

5. (TCO 9) Proponents of the managed floating exchange rate system argue that it has (Points : 4)

6. (TCO 8) a) Define the four basic types of trade barriers. b) Who gains and who loses from a protective tariff? Explain. (Points : 40)

7. (TCO 6) a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem of inflation? (Points : 40)