A. bank opening hours, the proportion of weekly paid employee’s interest rates
B. the price level interest rates real income
C. The time of year bank opening hours the price level
D. The proportion of weekly paid employees the time of year real income
Money, Interest Rates And Output
When real income increases other things equal we can expect the demand for real money holdings to ?
A. fall
B. not change
C. increase
D. None of these
The monetary base is …….. and ………?
A. bank deposits, building society deposits
B. Currency in circulation, banks cash reserves
C. retail sight deposits building society deposits
D. retail deposits, wholesale deposits
Equilibrium in the Money market will change if there is ?
A. a change in the real money supply
B. a change in real income
C. a change in competition in the banking industry
D. any of the above
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
A fall in investment demand can result from ?
A. higher interest rates
B. lower expected future profits
C. more expensive capital goods
D. All of the above
Which of the following is not a function of money ?
A. hedge against inflation
B. Medium of exchange
C. unit of account
D. Store of value
Commodity money ?
A. has no intrinsic value
B. has intrinsic value
C. is used exclusively in the economies of western Europe and north America
D. is used as reserves to back fiat money
Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates ?
A. Money supply will increase because Banca Solida will increase its loans
B. The effect on money supply cannot be determined from the information given
C. Money supply will decrease because the loans will have to be repaid
D. Money supply will be unchanged because the central bank has made no policy changes