Macro Context - quiz 3

Recession is the most dangerous economic problem to any government

• True

• False

An unbalanced increase in money supply can increase inflation

• True

• False

A low level of inflation can be useful to an economy.

• True

• False

Commercial Banks can create money through the money multiplier

• True

• False

Individuals can hold deposits in the central bank

• True

• False

Too much money chasing too few goods can result in inflation

• True

• False

Banks create deposits through lending   

• True

• False

Commercial banks manage the monetary policy

• True

• False

Required reserve is a percentage from commercial banks deposits to ensure sufficient liquidity

• True

• False