A. Money lenders
B. Central Bank
C. Private entrepreneurs
D. Government policy
Related Mcqs:
- 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 - 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 - Which of the following is not an instrument of monetary policy ?
A. Taxation
B. Bank rate
C. Open-market operations
D. Credit rationing - Which is the most widely used tool of monetary policy ?
A. Clearing house
B. Open-market operations
C. Discount rate
D. Issuing of notes - If people have rational expectations a monetary policy contraction that is announced and is credible could ?
A. reduce inflation with little or no increase in unemployment
B. Increase inflation but would decrease unemployment by an unusually large amount
C. increase inflation with little or no decrease in unemployment
D. reduce inflation but it would increase unemployment by an unusually large amount - The three main tools of monetary policy are ?
A. fiat, commodity and deposit money
B. Open-market operations reserve requirements and the refinancing rate
C. The money supply, government purchases and taxation
D. Government expenditures taxation and reserve requirements
E. Coin, currency and demand deposits - Monetary policy effects the _________ and __________?
A. reserve, unemployment
B. money supply, interest rate
C. taxes, exchange rate
D. stock price, minimum wage - A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A. enhances
B. undermines
C. encourages
D. facilitates - 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 - If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
A. reduce the minimum reserve asset ratio.
B. buy government securities on the open market
C. lower interest rates
D. sell government securities on the open market
