A. an asset
B. capital
C. net worth
D. a liability
Money, Interest Rates And Output
The difference between a bank’s actual reserves and its required reserves is its?
A. required reserve ratio
B. profit margin
C. excess reserves
D. net worth
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will ……… the size of the money multiplier?
A. reduce
B. have no effect on
C. increase
D. double
If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
A. change in a certain direction
B. remain constant
C. fall
D. rise
Which of the following events will lead to an increase in the demand for money ?
A. An increase in the interest rate
B. An increase in the level of aggregate output
C. A decrease in the price level
D. An increase in the supply of money
The main reason that people hold money to buy things is referred to as the ?
A. Profit motive
B. Precautionary motive
C. Transactions motive
D. speculation motive
The opportunity cost of holding money is determined by ?
A. the discount rates
B. the level of aggregate output
C. the interest rates
D. the inflation rates
In terms of the demand for money the interest rate represents ?
A. the rate at which current consumption can be exchanged for future consumption
B. the price of borrowing money
C. The opportunity cost of holding money
D. the return on money that is saved for the future
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
An increase in the money supply aimed at increasing aggregate output is referred to as ?
A. contractionary fiscal policy
B. expansionary monetary policy
C. contractionary monetary policy
D. expansionary fiscal policy