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.Management Sciences
Category: Money, Interest Rates And Output
Which of the following is included in broad money, but not included in narrow money ?
A. savings accounts
B. Travelers checks
C. Currency held outside banks
D. Automatic-transfer savings accounts
If the keep some money available in case I see a bargain this is an example of ?
A. asset demand for money
B. transactions demand for money
C. token demand for money
D. precautionary demand for money
Central banks prefer to fix the ____ and accept the resulting _____?
A. demand for money, interest rate
B. interest rate equilibrium money supply
C. demand for money equilibrium money supply
D. interest rate, demand for money
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
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
A. reduce
B. have no effect on
C. increase
D. double
Each point on the LM curve represents the equilibrium point in the ?
A. money market for the given level of the money supply
B. money market for different combinations of interest rates and output
C. goods market for the given level of government spending
D. goods market for the given interest rate
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
Money that a government has required has required to be accepted in settlement of debts is ?
A. barter money
B. currency value
C. legal tender
D. commodity money
Three variables affect the demand for money they are _______ and __________?
A. bank opening hours, the proportion of weekly paid employee’s interest rates
B. the price level interest rates real income
C. The time of year bank opening hours the price level
D. The proportion of weekly paid employees the time of year real income
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
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