A. establishing minimum reserve requirements of member banks
B. the discount rate it charges member banks
C. buying and selling government securities
D. all of the above
Related Mcqs:
- According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?
A. The velocity of circulation decrease
B. The number of transaction decrease
C. There is deflation
D. The velocity of circulation and the number of transactions is constant - A reduction in the money supply is likely to ?
A. Reduce the interest rate
B. Increase the interest rate
C. Increase inflation
D. Decrease deflation - To reduce the supply of money the government could ?
A. Reduce interest rates
B. Buy back government bonds
C. Sell government bonds
D. Encourage banks to lend - According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?
A. There is no income effect when tax rates are changed
B. The income effect of a wage change is greater than the substitution effect of a wage change.
C. There is no substitution effect when tax rates are changed
D. The substitution effect of a wage change is greater than the income effect of a wage change - The market system consists of planning by__________________?
A. inducement
B. direction
C. command
D. tradition - Collective behavior is often precipitated by__________________?
A. anomaly
B. rapid social change
C. deviant behavior
D. fear of the future - The precautionary demand for money is ?
A. An idle because
B. An active balance
C. Directly related to interest rates
D. Inversely related to income - “Soft “money is_________________?
A. money promised for campaigns
B. money used to purchase air time
C. money given after the election
D. none of the above - “Hard “money is_________________?
A. money actually tendered to campaigns
B. cash rather than checks or notes
C. money given during the campaign
D. none of the above - individuals who hold lesser positions and make less money than their parents are displaying_____________?
A. status inconsistency
B. horizontal mobility
C. intragenerational mobility
D. intergenerational mobility
