Banks create money by ?

Related Mcqs:

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...

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...

The demand for money represents the idea that there is ?

A. a positive relationship between the interest rate and the quantity of money demanded B. a negative relationship between the price level and the quantity of money demanded C. a negative relationship between the level of aggregate output and the quantity of money demanded D. a negative relationship between the interest rate and the quantity … The demand for money represents the idea that there is ?Read More...

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

A. lender of less resort B. financial intermediation C. Open Market operations D. Financial regulation...