Category: Money, Interest Rates And Output

A. Control the money supply
B. Provide notes and coins for trade
C. Make a profit
D. Provide a cheque clearing system

A. aggregate output increases the demand for money increase the interest rate increase planned investment
B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
C. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases
D. money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

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

A. The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed as an annualized percentage of the selling price and this is called the refinancing rate
B. Commercial banks may borrow from and lend to each other and the interest rate at which they do this is called the refinancing rate
C. In the UK the refinancing rate is known as the repo rate and in the USA it is referred to as the discount rate.
D. If the central bank has bought some assets from a commercial bank with an agreement that the commercial bank will buy them back at a later date, then this would be called a repo
E. If the central bank raises its refinancing rate then the commercial banks will try to reduce their lending and so reduce the need to borrow from the central bank

A. money supply curve
B. LM curve
C. money demand curve
D. IS curve

A. Transactions motive
B. precautionary motive
C. profit motive
D. speculation motive

A. IOU , inflation hedge store of value
B. Medium of exchange inflation hedge store of value
C. Medium of exchange unit of account IOU
D. Medium of exchange unit of account store of value
E. Medium of exchange unit of account store of value

A. rise by an amount that depends on the bank’s reserve ratio
B. rise by less than the amount of the deposit
C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
D. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio
E. be unchanged

A. fall
B. not change
C. increase
D. None of these

A. a change in the real money supply
B. a change in real income
C. a change in competition in the banking industry
D. any of the above