The monetary base is ________ and _________?

Related Mcqs:

1. A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

   A. reduction, increase
   B. reduction, reduction
   C. increase, reduction
   D. increase , increase

2. 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

3. A monetary union means ________, ________ and ________?

   A. permanently fixed capital movements floating exchange rates a fixed structure of interest rates
   B. permanently fixed exchange rates, free capital movements, a single interest rates
   C. a common currency a single central bank, common monetary policy
   D. a common currency floating exchange rates common monetary policy

4. If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

   A. lender of less resort
   B. financial intermediation
   C. Open Market operations
   D. Financial regulation

5. By controlling the monetary base economists mean ?

   A. making banks keep a certain % of their assets as M0
   B. controlling the money multiplier
   C. restricting the amount of cash in circulation
   D. not allowing commercial banks to issue notes and coins

6. As of 2002, the ________ became the official currency union of the European Monetary System ?

   A. dollar
   B. mark
   C. franc
   D. euro

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

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

8. Monetary policy effects the _________ and __________?

   A. reserve, unemployment
   B. money supply, interest rate
   C. taxes, exchange rate
   D. stock price, minimum wage

9. 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

10. An example of an expansionary monetary policy is ?

    A. a reduction in the taxes banks pay on their profits.
    B. an increase in the required reserve ratio
    C. an increase in the discount rate
    D. the Central bank buying government securities in the open market