The multiple by which total deposits can increase for every pound increase in reserves is the ?

Related Mcqs:

1. When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?

   A. depreciates, appreciates
   B. revalues, devalues
   C. appreciates, depreciates
   D. becomes more expensive becomes cheaper

2. The difference between a bank’s actual reserves and its required reserves is its?

   A. required reserve ratio
   B. profit margin
   C. excess reserves
   D. net worth

3. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

4. If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?

   A. depreciate
   B. not be affected
   C. fluctuate more than it would do therwise
   D. appreciate

5. If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

   A. depreciate
   B. not be affected
   C. fluctuate more than it would do therwise
   D. appreciate

6. If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

   A. rise
   B. fall
   C. not change
   D. fluctuate

7. Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

   A. Price inflation in the United States
   B. an increase in U.S real income
   C. a decrease in the British money supply
   D. falling interest rates in Britain

8. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?

   A. 20 pounds
   B. 40 pounds
   C. 60 pounds
   D. 80 pounds

9. Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?

   A. The pound appreciates, and UK net exports rise
   B. The pound appreciates, and UK net exports fall
   C. The pound depreciates, and UK net exports rise
   D. The pound depreciates, and UK net exports fall

10. An increasing in Europe’s taste for UK produced Hondas would cause the pound to ?

    A. depreciate and would increase UK net exports
    B. appreciate and would increase UK net exports
    C. depreciate and would decrease UK net exports
    D. appreciate, but the total value of UK net export stays the same