Which of the following is most important or frequently used to adjust the money supply? (a)Changing reserve requirements. (b)Open market operations. (c)Changing the discount rate. (d)Moral suasion.
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Which of the following is most important or frequently used to adjust the money supply?
(a)Changing reserve requirements.
(b)Open market operations.
(c)Changing the discount rate.
(d)Moral suasion.
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- A combination of a decrease in the required reserve ratio and a decrease in the discount rate would: • increase the money supply. have an indeterminate effect on the money supply. 10 15 decrease the money supply. • leave the money supply unchanged. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.All of the following except one are functions of the Bank of Canada. Which is the exception? Multiple Choice:- a) It is auditor and inspector of the commercial banks. b) It is the regulator of the money supply. c) It is the sole issuer of currency. d) It ensures that the commercial banks remain profitable. Please explain shortly reasons for correct option and other options.15. Cheques, Demand Drafts are example of question 15 options: Fiat Money Fiduciary Money Credit Money Full Bodied Money
- The narrowest definition of money: Question 9 options: contains only cash and bank reserves held at the Fed. includes the things that can be used in transactions immediately. is referred to as hard money. All of these are true.In defining money as M1 economists exclude time deposits on the grounds that _________. a. the intrinsic value of time deposits is nothing. b. the purchasing power of time deposits is much less stable than that of demand deposits and currency. c. they are not directly or immediately a medium of exchange. d. they are not recognized by the government as legal tender. e. They are quantitatively negligible as compared to checkable deposits.In order to promote digitalization of Indian banking system, the government encourages banks to open more ATMs in rural India, making withdrawals from bank accounts more convenient. Assume the RBI does not change the money supply.
- The size of the money multiplier depends upon all of the following EXCEPT Select one: a. the required reserve ratio. b. excess reserves relative to deposits. c. the currency-deposit ratio. d. the federal fund rates.Which of the following instruments is NOT used by the Federal Reserve to change the money supply? Group of answer choices the federal tax code open market operations the required reserve ratio the discount rateWhich of the following will cause the money supply to decline? a. an open market sale b. an open market purchase c. lowering the required reserve ratio d. lowering the discount rate
- If the Bank of Canada were to conduct an open market sale, it would Select one: a. decrease the money supply and increase output. b. increase the money supply and decrease output. c. increase the money supply and increase output. d. decrease the money supply and decrease output.Multiple Choice. Select the most suitable answer. The speculative demand for money suggests that: (a) Individuals hold onto money for the purpose of engaging in transactions (b) As the rate of interest rate increases, the demand for money will rise (c) When the economy becomes more uncertain, people are more likely to hold unto money (d) The velocity of money is constant (e) As the rate of interest falls, the demand for money will rise.When the growth rate of the money supply is decreased, interest rates will fall immediately if the liquidity effect is _____ than the other money supply effects and there is _____ adjustment of expected inflation. Question 18 options: larger; fast larger; slow smaller; slow smaller; fast