Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

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...

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...

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 interest rate is determined in ?

A. the money and labor markets B. the goods and labor markets C. the goods market D. the money markets...

M4 is a __________ measure of money and includes deposits at both __________ and _________?

A. narrow, banks, building societies B. wide, banks insurance companies C. Narrow, banks insurance companies D. Wide, banks building societies...