Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?

Related Mcqs:

Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?

A. the money supply increases by more than Rs 1,000 B. the money supply increase by less than Rs 1,000 C. the money supply decrease by less than Rs 1,000 D. the money supply decrease by more than Rs 1,000 E. The money supply is unaffected...

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...

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...

Which of the following events will lead to a decrease in the equilibrium interest rate ?

A. A sale of government securities by the central bank B. An increase in the level of aggregate output C. An increase in the discount rate D. A decrease in the price level...

Banks create money by ?

A. printing it B. issuing debit cards C. accepting cheques D. lending out part of their deposits...