Econ 202 MUST HAND IN THIS SHEET
Fourth Exam - GREEN
Fall 2010 Print Name ______________________________
ID Number ______________
PART II - Matching
(20 Points) Place the most correct number from the “Answers” shown in the space preceding the
listed “Questions.” Use only one number for each question. Answers should be used only once..
POTENTIAL ANSWERS
1. Benefits Received
2. Tim Geithner
3. Expansionary Monetary Policy
4. Prime Rate
5. Excess Reserves
6, Christina Romer
7. Progressive Tax
8. London Interbank Offer Rate
9. Quantitative Easing
10. Ability-to-pay
11. Fiduciary Responsibility
12. Ben Bernanke
13. Tight money policy
14. Federal Funds Rate
15. Reserve Requirement
16. Unemployment Compensation
17. Reserve Currency
18. Discount Rate
19. Regressive Tax
20. Tax Free Reserves
ANSWER
NO. QUESTIONS
9 (1) Federal Reserve decision to buy $600 billion in Gov’t bonds is called this.
19 (2) Rate decreases as base increases
17 (3) The way Central Banks hold extra (or excess) spending power
18 (4) Interest rate commercial banks pay when they borrow from the Federal
Reserve
11 (5) Safe-keeping functions of commercial bank
3 (6) Monetary policy used to cure recession
14 (7) Interest rate banks pay when borrowing from another bank
16 (8) An automatic stabilizer
12 (9) Current chairman of Board of Governors of Federal Reserve
10 (10) Progressive income tax is based on this