The three main monetary policy instruments are
A. the money supply, the market interest rate, deposit insurance
B. open market operations, reserve requirement ratio, the discount rate
C. open market operations, deposit insurance, the money supply
D. open market operations, reserve requirement ratio, the market interest rate
Ans: B. open market operations, reserve requirement ratio, the discount rate
You might also like to view...
Which of the following assertions is false?
A) The Great Depression was a typical business cycle. B) Very rapid growth occurred during World War II. C) Real GDP per capita dipped about 30% during the Great Depression. D) On average, the U.S. economy grows at a rate of 2.1%.
The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is
a. defined by the dollar cost of the equipment. b. the same for every health care provider. c. measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. d. defined by the next best use of the money invested in the equipment. e. impossible to calculate.
Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate
A corporation with "plowback"
a. deliberately earns negative profit on some activities in order to get better tax treatment. b. buys back shares of its stock from shareholders. c. retains some of its earnings for investment. d. issues unsecured stock.