Interesting US civics test

[fmxda]

You answered 47 out of 60 correctly — 78.33 %

I have a B.A. in economics, that's definitely what a public good is.

BUT... question 58, a fellow econ grad needs to help me out.

What is a major effect of a purchase of bonds by the Federal Reserve?
A. A reduction in the supply of common stock.
B. An increase in the volume of commercial bank loans.
C. A decrease in the supply of money.
D. An increase in interest rates.
E. A decrease in investment spending by businesses.

Purchase of bonds by Fed = increase in money supply = increase in interest rates, no? So I thought D.

Furthermore, B C & E all seem consistent with a LOWER interest rate. Yet the answer is B? I'm so confused!

[daryn]

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66%, i passed!

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see daryn didnt do well and he's the smartest person he knows, so thats pretty much proof that test means dick [img]/images/graemlins/smile.gif[/img]

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yeah man too many dumb terms and guys i have never heard of. but i took my lumps like a man. i'm sure if you went to school for history or econ you'd do much better than i did. then again if they had a test for science and math in this format i would crush and everyone else would get 60's blahahahaha

[kipin]

[ QUOTE ]
You answered 47 out of 60 correctly — 78.33 %

I have a B.A. in economics, that's definitely what a public good is.

BUT... question 58, a fellow econ grad needs to help me out.

What is a major effect of a purchase of bonds by the Federal Reserve?
A. A reduction in the supply of common stock.
B. An increase in the volume of commercial bank loans.
C. A decrease in the supply of money.
D. An increase in interest rates.
E. A decrease in investment spending by businesses.

Purchase of bonds by Fed = increase in money supply = increase in interest rates, no? So I thought D.

Furthermore, B C & E all seem consistent with a LOWER interest rate. Yet the answer is B? I'm so confused!

[/ QUOTE ]

It is B.

The government buying treasury bills increases the money supply which makes more funds available for loans thus increasing the amount of loans.

[Ricky_Bobby]

56/60
2 of the ones I missed I'm kicking myself for now.

[Lottery Larry]

Great- thanks for making me feel stupider than average.
73.33%

[rwesty]

29/60. Am I the low so far? I'm from the US.

I challenge anyone who beat me to an IQ test or an algebra problem speed contest.

[Kimbell175113]

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29/60. Am I the low so far? I'm from the US.

I challenge anyone who beat me to an IQ test or an algebra problem speed contest.

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Seriously? I think that'd be fun even though I'm definitely not your toughest competition in here.

[youtalkfunny]

75% for me.

Since 25% of the questions were about Plato and other foreigners, I'm OK with that score.

[vqchuang]

average score, kind of sad considering I got a 5 in APUSH only 5 years ago.

[Huckle]

40/60
Not from the us and never read any American history. I thought it was really hard, how am I supposed to know a bunch of weird quotes. I think I luckboxed a bit on the guessing though.