Which of the following is NOT a component of the money supply?

monetary Economics - 2025

Quiz
•
Arts
•
1st Grade
•
Hard
Babila Kingsly
Used 1+ times
FREE Resource
20 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
a) Currency in circulation
Demand Deposit
c) Government bond
Saving Deposit
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following factors influences the supply of money?
a) Central bank policies
b) Public demand for cash
c) Reserve requirements of banks
d) All of the above
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The money multiplier effect is mainly determined by which of the following?
a) Interest rates
b) Reserve ratio
c) Inflation rate
d) GDP growth
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to the money supply when the central bank increases the reserve requirement?
a) It increases
b) It decreases
c) It remains unchanged
d) It fluctuates randomly
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which institution primarily regulates the supply of money in an economy?
a) Commercial banks
b) Ministry of Finance
c) Central bank
d) Stock exchange
6.
FILL IN THE BLANK QUESTION
1 min • 1 pt
The money market deals with long-term financial instruments, while the capital market deals with short-term financial instruments. State true or false
7.
FILL IN THE BLANK QUESTION
1 min • 1 pt
The capital market plays a crucial role in economic development by providing funds for investment in infrastructure and industry.
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