G9 Monetary Policy, savings, investment

G9 Monetary Policy, savings, investment

Multiple Choice

Which of the following best describes the goal of Monetary Policy?

• Controlling taxes

• Controlling the national debt

• Controlling the money supply

• Preventing unemployment and inflation

Multiple Choice

The following are the tools used in monetary policy except for

• Open market operations

• Reserve requirements

• Discount rate

• Taxation

Multiple Choice

If the BSP wishes to decreases the money supply, it should:

• buy government securities in the open market

• raise the discount rate

• lower the reserve requirements

• raise the Value Added Tax

Multiple Choice

An increase in the money supply causes:

• interest rates to fall, investment spending to rise, and aggregate demand to rise

• interest rates to rise, investment spending to rise, and aggregate demand to rise

• interest rates to rise, investment spending to fall, and aggregate demand to fall

• interest rates to fall, investment spending to fall, and aggregate demand to fall

Multiple Choice

Stock prices have declined for the last two weeks.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

GDP dipped from 3 percent to 1 percent in the last year.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

The CPI have risen 3.5 percent in the last six months

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

Commercial interest rates are rising, but BSP has not raised rates.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

The prices of cars have tripled in the last year.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

The Philippines is both experiencing high inflation rate and high unemployment rate

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

Unemployment is low and prices are rising steadily.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

Jobless rates are pushing 11 percent while the CPI has fallen from 8 percent to 2 percent growth.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

Prices are stable, and the GDP is growing at a 3 percent pace.

• Expansionary monetary policy

• Contractionary policy

• Does not relate to monetary policy

Multiple Choice

It refers to the interest rate the central bank reserve charges its member banks.

• Discount Rate

• Reserve requirement

• Open market operations

• Government securities

Multiple Choice

It refers to the percentage of money that all banks must keep on hand.

• Discount Rate

• Reserve requirement

• Open market operations

• Government securities

Multiple Choice

Expansionary monetary policy is used to reduce inflation rate.

• TRUE

• FALSE

Multiple Choice

What are some of the different options for saving?

• Savings accounts, checking accounts, debit accounts, and credit cards

• Checking account, savings account, Certificates of Deposits, and Money Market

• Federal deposit insurance corporation

• Investing in entrepreneurs

Multiple Choice

An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time, the bank imposes a penalty fee.

• Savings Account

• Certificate of Deposit (CD)

• Checking Account

• Money Market Account

Multiple Choice

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing

• Depositing

• Time Value of Money

• Investing

Multiple Choice

A type of bank account where the bank invests the money in government and corporate securities in order to pay a higher interest rate than a regular savings account. You typically have to have a large minimum balance in order to have such an account.

• Savings Account

• Certificate of Deposit

• Money market account

• Checking Account

Multiple Choice

he phrase "Not putting all your eggs in one basket" means to

• invest in the same stock.

• invest in dairy stock

• invest in livestock

• invest in different types of stock.