Monetary policy effects the _________ and __________?

A. Reserve, unemployment
B. Money supply, interest rate
C. Taxes, exchange rate
D. Stock price, minimum wage

The Bank of England and the Federal Reserve ?

A. Are central banks
B. Are branches of commercial banks
C. Use fiscal policy to influence gdp
D. Loan money to most of ldc commercial banks

Money has 3 main function they are __________ and __________?

A. iou , inflation hedge store of value
B. medium of exchange inflation hedge store of value
C. medium of exchange unit of account iou
D. medium of exchange unit of account store of value

Banks create money by ?

A. Printing it
B. Issuing debit cards
C. Accepting cheques
D. Lending out part of their deposits

If banks and the private sector decide to hold less cash the money multiplier will be ?

A. Unchanged
B. Larger
C. Smaller
D. Unstable

If the keep some money available in case I see a bargain this is an example of ?

A. Asset demand for money
B. Transactions demand for money
C. Token demand for money
D. Precautionary demand for money

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

A. Fall
B. Increase
C. Not change
D. None of these

M4 is a __________ measure of money and includes deposits at both __________ and _________?

A. Narrow, banks, building societies
B. Wide, banks insurance companies
C. Narrow, banks insurance companies
D. Wide, banks building societies

Each point on the LM curve represents the equilibrium point in the ?

A. Money market for the given level of the money supply
B. Money market for different combinations of interest rates and output
C. Goods market for the given level of government spending
D. Goods market for the given interest rate

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

A. Money supply curve
B. Lm curve
C. Money demand curve
D. Is curve