Multiple Choice
An increase in the perceived instability of banks
A) leads to bank failure.
B) decreases the demand for money.
C) increases people's dependence on banks for transactions.
D) led to the elimination of reserve requirements in 1992.
E) increases the demand for money.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: To increase the nominal money supply, the
Q4: An open market purchase<br>A)causes decrease in the
Q5: Unpredictable shocks to the financial system<br>A)increase the
Q6: Quantitative easing occurs when the central bank<br>A)increases
Q7: Quantitative easing may work because<br>A)interest rate increases
Q9: Government printing of money to finance government
Q10: Unconventional monetary policy includes<br>A)money growth targeting.<br>B)negative nominal
Q11: Buying an item with cash would be
Q12: The nominal money demand is defined
Q13: If R < q, then<br>A)the marginal benefit