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.Management Sciences
Category: Money, Interest Rates And Output
If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
A. be reduced
B. not be affected
C. fall to zero
D. be increased
As the required reserve ratio is decreased the money multiplier ?
A. decreases
B. remain the same, as long as banks hold no excess reserves
C. could either increase or decrease
D. increases
A checking deposit in a bank in considered _________ of that bank?
A. an asset
B. capital
C. net worth
D. a liability
A fall in investment demand can result from ?
A. higher interest rates
B. lower expected future profits
C. more expensive capital goods
D. All of the above
Which of the following is not a function of money ?
A. hedge against inflation
B. Medium of exchange
C. unit of account
D. Store of value
Government Securities with terms of more than one year are called ?
A. bills of exchanges
B. government bonds
C. Treasury bills
D. Capital bills
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 ?
A. assets
B. deposits
C. loans
D. government bonds
The idea the government spending causes a reduction in private investment is called ?
A. fiscal drag
B. investment blight
C. crowding-out
D. the Thatcher effects
The refinancing rate is ?
A. The interest rate at Which commercial banks lend to and borrow from each other
B. The interest rate the European Central Bank pays on reserves
C. The interest rates the public pays when borrowing from banks
D. The interest rates the European Central Bank charges on loans to banks
E. He interests rate banks pay on the public’s deposits
The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
A. aggregate supply curve
B. LM curve
C. aggregate demand curve
D. IS curve
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