I- an externally dependent banking system
II- a poorly developed securities market
III- a low percentage of demand deposits divided by the total money supply
IV- the relative insensitivity of investment and employment to monetary policies
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II , III and IV
Related Mcqs:
- Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?
A. assets
B. deposits
C. loans
D. government bonds - Which function is performed by both commercial banks and central banks ?
A. Acting as bankers to the government
B. Advising the government on monetary policy
C. Dealing in foreign exchange
D. Fixing the main interest rate - Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry. - The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
A. increase; increase
B. increase; reduce
C. reduce; reduce
D. reduce; increase - Central bank’s rate of lending to commercial banks is called ?
A. Interest rate
B. Discount rate
C. Money rate
D. Control rate - Central banks prefer to fix the ____ and accept the resulting _____?
A. demand for money, interest rate
B. interest rate equilibrium money supply
C. demand for money equilibrium money supply
D. interest rate, demand for money - In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
A. money supply targets
B. income policy
C. interest rates
D. inflation targets - “Seigniorage” is a source of revenue for central banks earned from_____________?
A. Issuance of Debt securities
B. Issuance of notes and coins
C. Dollar Reserves
D. All of aboveSubmitted by: Asad Javed
- If banks and the private sector decide to hold less cash the money multiplier will be ?
A. Unchanged
B. Larger
C. Smaller
D. Unstable - A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?
A. Keeping balanced budget, a price target
B. slow economic growth under colonial capitalism
C. minimizing public spending in the rural areas
D. western countries, nation-state ideology
