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
Which 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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