Monetary policy effects the _________ and __________?

Related Mcqs:

1. If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?

   A. an increase in the level of output B. a decrease in the unemployment rate C. an increase in the rate of inflation D. All of these answers...

2. In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

   A. decrease; depreciate B. decrease; appreciate C. increase; depreciate D. increase; appreciate...

3. One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?

   A. rise; increase, increase B. rise, falls, increase C. rise, increase, falls D. rise, falls, falls...

4. Monetary policy is regulated by ?

   A. Money lenders B. Central Bank C. Private entrepreneurs D. Government policy...

5. Which is the most widely used tool of monetary policy ?

   A. Clearing house B. Open-market operations C. Discount rate D. Issuing of notes...

6. Which of the following is a problem for monetary policy in a currency union ?

   A. Money supply is more difficult to control in a currency union. B. The inflation-unemployment trade-off is more unstable in a currency union C. All of these answers describe problems for monetary policy in a currency union D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s...

7. A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

   A. enhances B. undermines C. encourages D. facilitates...

8. Expansionary monetary policy ?

   A. tends to lead to an appreciation of a nation’s currency B. tends to lead to a depreciation of a nation’s currency C. usually has no effect on a currency’s exchange value D. tends to lead to a depreciation of the currencies of other nations...

9. If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?

   A. increase the minimum reserve asset ratio. B. buy government securities on the open market C. raise interest rates D. sell government securities on the open market...

10. All the following are types of monetary policy expect ?

    A. a nominal money stock target B. a balanced budget C. an inflation target D. The pursuit of a target real interest rate...