MBA 820, Finance, Summer 2005, Final Exam
OSU Ohio State University
Answer Key Included
Part I: Multiple-Choice: [1 point each]
1. If the Markets Desk at the New York Federal Reserve Bank purchases T-bills, this will:
1. Increase the Federal Funds Rate
2. Decrease the Federal Funds Rate
3. Raise the value of the dollar on the foreign exchange market
4. Lower the value of the dollar on the foreign exchange market
5. Both a and c
6. Both a and d
7. Both b and c
8. Both b and d
2. Demand influences production according to (choose the answer/answers that does/do NOT apply):
1. Classical Economics
2. Keynesian Economics
3. Monetarists
4. New Classical Economics
5. New Keynesian Economics
3. For a country to peg its exchange rate, the country’s central bank must (choose the answer/answers that does/do NOT apply):
1. Keep monetary autonomy
2. Change the money supply
3. Buy short term bonds
4. Buy foreign exchange
5. Accumulate reserves
4. GDP in 1981 was $2.96 trillion. It grew to $3.07 trillion in 1982, yet the quantity of output actually decreased. This is because:
1. Prices increased
2. GDP is not the same as Real GDP
3. Statistical discrepancies caused in error in the 1981 reading
4.
2. This exam consists of 60 multiple-choice questions. Select the BEST answer and mark the appropriate
VERSION A Page 1 ACG 2021C EXAM 1 FALL 2000 NAME ___________________________________________ SS# ____________________________ Instructions: Using the X NOW: Bubble in your section number on your Scan Sheet. Fill in your name and social security number on this examination and scan sheet. 1. What is the difference between a. and a. Listen carefully for any comments your proctor may have related to the exam. Read these instructions carefully.
What caused the positive economic changes for the United States during the 1980s? In the years prior to the Reagan administration, the United States’ economy experienced something called stagflation. In the 1980s, the economy saw positive changes. The policies enacted by the Reagan administration, or ‘Reaganomics’, are responsible for the positive changes in the United States’ economy. In the years prior to the Reagan administration, the United States experienced a suffering economy.
The American economy seemed to get worse by the end of 1981 and economists throughout the country were getting more and more concerned about it. ... ... middle of paper ... ... re a lot of bad things, but in my opinion I think economists expect too much out of the US government.
During the 70?s the world entered a recession because ?the cost of economic growth of other industrialized nations began to rise rapidly?, the United States felt the effect. (AMSA, 2004, ¶ 14). With the development of other nations, came lose of industrial production for the United States of America. American Medical Student Association (2004) stated ?In 1950 we had 60% and by 1980 we only claimed 30% of the world production?, this brought higher prices as well as loses of jobs.
1994 is a sharp increase, but even if the growth rate for 1994 is not
6. Data Download Program, The Federal Reserve Board, 5 Aug 2009, web. 6Dec. 2009 www.federalreserve.gov/datadownload,
Before we begin our investigation, it is imperative that we understand the historical role of the central bank in the United States. Examining the traditional motives of this institution over time will help the reader observe a direct correlation between it and its ability to manipulate an economy. To start, I will examine one of its central policies...
The first major aspect of the monetary policy by the Federal Reserve is its interest rate policy. This interest rate policy is mainly determined by the figure for the federal funds rate, which is the rate at which commercial banks with balances held within the Federal Reserve can borrow from each other overnight in ord...
Author Unknown (1994). The Federal Reserve System: Purposes and Functions (5th ed.) Published by Library of Congress
Ritter, Lawrence R., Silber, William L., Udell, Gregory F. 2000, Money, banking, and Financial Markets, 10th edn, USA.
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
As we are moving to the end of the course, we want to present you with the Federal Reserve System (Fed), which is the central bank of the USA. We are going to explore the roles of Fed in regularizing the economy, its function, and also the tools used in doing that. We will learn how central banks regulate the banking system and how they manage money supply in economies. We will also be presented to the financial crises lessons we can be able to understand the importance of the regulatory system; and then, we answering questions such as:
The increase in jobs improved the average American’s GDP by 5.9 percent. Whilst the GDP ...
Kuttner, R. (2009, June). Betting the Fed: The Federal Reserve Can Do What Democratic Institutions Can't. but Its Days as a Shadow Government May Be Numbered. The American Prospect, 20, 33+.