Federal Tax Revenues

In recent years, the federal tax that generated the largest
percentage of federal tax revenues has been the

corporate income tax.
social security tax.
personal income tax.
sales tax

Which of the following is a correct listing of money's functions?

Source of credit, value of transaction costs, unit of barter
Medium of barter, medium of exchange, medium of transactions
Unit of barter, unit of account, a unit of income
Store of value, medium of exchange, unit of account

Which of the following statements is true?

Of the three components of M1, the checkable deposits component is
the largest.
M1 is sometimes referred to as the broad definition of the money
supply.
Time deposits are a part of M1 but not M2.
M1 is a larger dollar figure than M2.

Required reserves are the amount of_________________.

reserves a bank must hold against its deposits as mandated by the
Federal Reserve
cash a bank must hold against its deposits as mandated by the
Federal Reserve
checkable deposits a bank must hold against all other deposits as
mandated by the U.S. Treasury
reserves a bank must hold against all its assets as mandated by the
Federal Reserve

Bank A has deposits of $5,000 and reserves of $1,800. If the
required-reserve ratio is 0.20, the bank has required reserves of
________________.

$1,000
$2,000
$3,000
$4,000

The Federal Reserve System is the__________________.

federal government agency that collects taxes and spends these
receipts on tanks, bridges, employees' salaries, etc.
company that delivers packages to your front door
central bank of the United States
federal government agency that collects and disseminates all the
economic data that economists are interested in

If the Fed wants to increase the money supply through an open market
operation, it will

purchase government securities .
sell government securities.
First purchase, then sell, government securities.
Lend more reserves to commercial banks.

The sale of a government security by the Fed

decreases the supply of money.
increases the supply of money.
decreases the demand for money.
increases the demand for money.

The Fed can change the money supply by changing

the required-reserve ratio.
marginal income tax rates.
federal excise taxes.
unemployment benefits.

The larger the simple deposit multiplier,

the larger the required-reserve ratio.
the smaller the required-reserve ratio.
the smaller the change in the money supply for a given change in
deposits.
the less likely the Fed will be to use its monetary policy tools.