Who set the relationship between current inflation and real interest rate?
► Monetary policy makers
► Fiscal policy makers
► Budget makers
► Monetary policy maker or fiscal policy maker
How actual funds rate is determined in the market?
► By demand and supply in the market
► By overall purchase and sale in the market
► By lending capacity of the bank
► Total deposits of the bank
Given the quantity of money and the price level, what impact on aggregate demand, if any, should result from an increase in the velocity of money?
► It should decrease
► It should increase
► It should remain constant since the quantity of money is constant
► Aggregate demand is not influenced by the velocity of money
Which of the following statements is the most appropriate?
► The Fed can control the amount of reserves
► The Fed can control the size of the monetary base and the price of its components
► The Fed can control the size of the monetary base but not the price of its components
► The Fed can control the make up of the monetary base
If a bank has deposits of $300 million, reserves that total $40 million and has a required reserve rate of 10 percent then which one of the following is correct?
► The bank is short of required reserves
► The bank has excess reserves of $10 million
► The bank has excess reserves of $5 million
► The bank has a net profit of $10 million
The self-correcting mechanism of the economy explains why________?► Fiscal policy cannot increase aggregate demand in the short run
► The natural rate of output changes to eliminate unemployment
► Wages and prices adjust to return the economy to full employment
► The economy will not sustain inflation
Which of the following statement is true about relationship between Loans and Assets?
► Loans make up about one-third of total assets.
► Loans make-up about one-half of total assets.
► Loans make up about two-thirds of total assets.
► Loans make up about one-fourth of total assets.The Fed could make the market federal funds rate equal the target rate by which of the following?
► Mandating that all loans be transacted at the target rate
► Entering the federal funds market as a borrower and a lender
► Setting the discount rate below the federal funds rate
► Raising the required reserve rate
Reference
Which of the following technique is necessary for making profit in a bank?
► Interest rate on liabilities must be lower
► Interest rate on deposits must be higher
► Interest rate on deposits must be higher than the interest rate on the liabilities
► Interest rate on deposits must be lower than the interest rate on the liabilities
--
On Wed, Feb 15, 2012 at 2:48 PM, Zahid <zahid678@gmail.com> wrote:
Thank u so much Misbahplz give me the following mcqs answers alsoThe self-correcting mechanism of the economy explains why________?► Fiscal policy cannot increase aggregate demand in the short run
► The natural rate of output changes to eliminate unemployment
► Wages and prices adjust to return the economy to full employment
► The economy will not sustain inflation
Which of the following statement is true about relationship between Loans and Assets?
► Loans make up about one-third of total assets.
► Loans make-up about one-half of total assets.
► Loans make up about two-thirds of total assets.
► Loans make up about one-fourth of total assets.The Fed could make the market federal funds rate equal the target rate by which of the following?
► Mandating that all loans be transacted at the target rate
► Entering the federal funds market as a borrower and a lender
► Setting the discount rate below the federal funds rate
► Raising the required reserve rate
Which of the following technique is necessary for making profit in a bank?
► Interest rate on liabilities must be lower
► Interest rate on deposits must be higher
► Interest rate on deposits must be higher than the interest rate on the liabilities
► Interest rate on deposits must be lower than the interest rate on the liabilities
On Wed, Feb 15, 2012 at 1:45 PM, Misbah Yousuf <mc080404066@vu.edu.pk> wrote:
ReferenceWhich of the following statement is correct?
► Higher the future value of payment shorter will be the time
► Lower the future value of payment the longer will be the time
► Lower the future value of payment the shorter will be the time
► Higher the future value of payment longer will be the time
To use money growth as a short term monetary policy instrument, a central bank must believe that
► Deposit expansion multiplier is volatile and unpredictable
► Only money matters
► There is an unpredictable relationship between money aggregates and inflation
► There is some stable link between the monetary base and the money aggregates
According to the modern quantity theory, changes in aggregate spending are primarily due to:
► Consumption changes
► Investment changes
► Money supply changes
► Interest rate changes
--
On Wed, Feb 15, 2012 at 1:03 PM, Zahid <zahid678@gmail.com> wrote:--If the cost of the currency is the interest it would earn on deposits then what would be its benefit?
► Higher risk and lower liquidity
► Higher risk and higher liquidity
► Lower risk and lower liquidity
► Lower risk and higher liquidityWhich of the following statement is correct?
► Higher the future value of payment shorter will be the time
► Lower the future value of payment the longer will be the time
► Lower the future value of payment the shorter will be the time
► Higher the future value of payment longer will be the time
To use money growth as a short term monetary policy instrument, a central bank must believe that _____________.
► Deposit expansion multiplier is volatile and unpredictable
► Only money matters
► There is an unpredictable relationship between money aggregates and inflation
► There is some stable link between the monetary base and the money aggregates
According to the modern quantity theory, changes in aggregate spending are primarily due to:
► Consumption changes
► Investment changes
► Money supply changes
► Interest rate changes
--
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