A. lender of less resort
B. financial intermediation
C. Open Market operations
D. Financial regulation
Related Mcqs:
- For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
A. decrease the money supply
B. increase the money supply
C. increase the demand for money
D. decrease the demand for money - 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 - With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
A. increased
B. unaffected
C. reduced
D. None of these - Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?
A. Rs 4,000
B. Rs 5,000
C. Rs 1,000
D. Rs 0 - There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
A. Grey market
B. Over-the counter (OTC)
C. Open market
D. Back market - A central bank or monetary authority hold foreign currency for the purpose of exchange intervention and the settlement of intergovernmental claims. Term the currency ?
A. Reserve currency
B. Hot currency
C. Pegged currency
D. Hard currency - How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?
A. combine fund
B. Mutual fund
C. Liquid fund
D. Stock holding company - Term the central market for buying and selling all kind of securities ?
A. A big company
B. Stock Exchange
C. Joint stock
D. A multinational company - Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?
A. rise by an amount that depends on the bank’s reserve ratio
B. rise by less than the amount of the deposit
C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
D. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
E. be unchanged - Which of the following financial market securities would probably pay the highest interest rate ?
A. A bond issued by a startup company
B. A government bond issued by the government of France.
C. A bond issued by a blue-chip company
D. An investment funds with portfolio of corporate bonds issued by blue chip companies
