“Seigniorage” is a source of revenue for central banks earned from_____________?

Related Mcqs:

1. 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

2. 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

3. Central bank’s rate of lending to commercial banks is called ?

   A. Interest rate
   B. Discount rate
   C. Money rate
   D. Control rate

4. 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

5. Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of ?

   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

6. 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

7. 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

8. Lespeyres type indexes use weights from_____________?

   A. current period
   B. base-period
   C. forecasting
   D. future year

9. What is called interest that is paid previously earned interest as well as on the principal ?

   A. Gross interest
   B. Simple interest
   C. Total interest
   D. Compound interest

10. Which type of income is earned only the actor of production enterprise ?

    A. interest
    B. Profit
    C. rent
    D. wages