A. Clearing house
B. Open-market operations
C. Discount rate
D. Issuing of notes
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 - Monetary policy is regulated by ?
A. Money lenders
B. Central Bank
C. Private entrepreneurs
D. Government policy - Which of the following is not an instrument of monetary policy ?
A. Taxation
B. Bank rate
C. Open-market operations
D. Credit rationing - The chain of events that results from an expansionary monetary policy is ?
A. aggregate output increases the demand for money increase the interest rate increase planned investment
B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
C. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases
D. money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases - 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 - 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 - 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 - The implementation lag for monetary policy is generally ?
A. the same as it is for fiscal policy
B. much shorter than it is for fiscal policy
C. mush longer than it is for fiscal policy
D. unrelated to central bank action - 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
