econ

Some economists feel inflation is bad

• Because it reduces real GDP so much

• Only if it is anticipated

• Only if it is persistent

• Because it redistributes income arbitrarily

The General Council of ECB

• consists of the governors of the national central banks of all EU Member States, plus the President and Vice-President of the ECB

• consists of the governors of the national central banks of all EU Member States, plus the six members of the Executive Board

• takes all of the ECB'S monetary policy decisions

• consists of the governors of the euro area national central banks, plus the six members of the Executive Board

The Governing Council of the ECB takes its monetary policy decisions on the basis of

• an economic and statistical analysis

• a financial and statistical analysis

• an economic and monetary analysis

• an economic and financial analysis

The Eurosystem's marginal lending facility enables banks to

• make overnight deposits at their central bank

• obtain liquidity with the maturity of one week, against sufficient eligible assets

• obtain overnight liquidity from their central bank, against sufficient eligible assets

When was Euro launched?

• 1999

• 1994

• 2001

• 2003

Which statement best describes the monetary aggregate M1?

• It comprises deposits with an agreed maturity of up to and including two years and deposits redeemable at notice of up to and including 3 months

• It comprises currency in circulation and overnight deposits

• It comprises repurchase agreements and money market fund shares and units, as well as debt securities with an agreed maturity of up to and including 2 years.

Unaticipated inflation benefits

• Borrowers at the expense of lenders

• Publicly quoted companies at the expense of private partnerships

• Investors at the expense of savers

• Taxpayers at the expense of government

If the CB (Central Bank) wishes to contract the money supply, it could do any of the following: sell government bonds, raise the reverse requirement, and raise the refinancing rate

• True

• False

• Buying government bonds in open market operations

• Increasing reverse requirements

• All of these will increase the money supply

• Increasing the refinancing rate

• at which commercial banks lend to and borrow from each other

• the ECB charges on loans to banks

• banks pay on the public's deposits

• ECB pays on reserves

• the public pays when borrowing from banks