ECO 205 20231130

Currency has which of the following functions

• All answers are correct

• Payment method

• Reserve means

• Accounting means

Monetary policy is implemented by which of the following agencies:

• The financial

• State Planning Committee

• Central bank

• Goverment office

The Central Bank's regulations on compulsory reserves include:

• Percentage of reserves in precious metals such as gold, at intermediary banks

• Ratio of foreign currency reserves at intermediary banks

• The minimum reserve ratio that intermediary banks are required to retain from deposits

• The ratio of cash reserves to precious metals such as gold.

The Central Bank reduced the required reserve ratio from 10% to 5%. This action will cause:

• Increased risks of the banking system

• Not related to banking system risks

• Reduce risks of the banking system

• Not enough information to draw conclusions

The required reserve ratio is at 5%. Intermediary bank A receives a new deposit amount of $1000,000. Thus, the reserve amount must be at:

• $50000

• $500

• $5000

• $500000

Central bank A receives new deposits of $1000. The required reserve ratio is 10%. How much will the money supply increase?

• $10000

• $100

• $1000

• $100000

Using currency to buy and sell goods and services is the function of:

• Reserve function

• Payment function

• Accounting function

• All answers are correct

Central bank A receives new deposits of $1000. The required reserve ratio is 10%. What is the current money multiplier

•    10

• 100

• 1000

•      1

If the central bank increases the money supply, which of the following statements is TRUE about the money supply curve?

• Shifts to the right and causes interest rates to decrease

• Shifts to the right and causes interest rates to increase

• Shift to the left and increase interest rates

• Shift to the left and cause interest rates to decrease

Inflation is understood as:

• An increase in the general price level and a decrease in the value of the domestic currency

• An increase in the general price level and an increase in the value of the domestic currency

• A decrease in the general price level and a decrease in the value of the domestic currency

• A decrease in the general price level and an increase in the value of the domestic currency