One strategy that central banks can use to control inflation is O Increasing the capacity of reserves O Reducing interest rates Injecting stimulation packages O Increasing the supply of money
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- List the three traditional tools that a central bank has for controlling the money supply.According to the Seeking Alpha article, the velocity of money is O needed for creating credit O explains why South Korea is increasing its money supply O looks at deflationary trends V None of these O leading to inflationThe central bank of Barbados decides to pursue an expansionary monetary policy. i) identify one possible action they could take ii) Carefully explain in as much detail as possible, how the chosen action will impact money market. iii) Illustrate with a diagramthe overall impact of the chosen action on the money market.
- a. tax increase b. economic growth c. expected inflation d. income increase e. currency appreciation f. technology breakthrough Which ones of the above economic factors will increase money supply? Which ones of the above economic factors will increase demand for money ?What is the main tool used by central banks to influence short-term interest rates and the money supply? A. Fiscal policy B. Open market operations C. Exchange rate policy D. Price controlsQuestion 6 Assuming a banking system with limited reserves, which of the following will most likely happen if a country's government decreases its spending and the central bank increases the money supply? A B C D E An increase in unemployment and an appreciation of the currency An increase in interest rates and a decrease in aggregate supply A decrease interest rates and an increase investment spending. A depreciation of the currency and an increase in imports. An increase in aggregate demand and unemployment
- In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answerCurrency M1 Money supply measure Venn diagram M2 Currency mitows M1 M2 • Traveler's checks • Checkable deposits In 6-1 we studied the effects of the money supply and looked at different measures of money. Indicate the measures of money that would increase as a result of the following secnario. Sam's grandmother Tina decides to finally deposit all of the money she has been keeping under her mattress in a comerical savings account. Select the correct answer. • Savings deposits • Time deposits • Money market mutual funds1. Discuss the Quantity Theory of Money. What are its assumptions and limitations?
- The Great Swedish Warrior that Never Lived Hog Sverige! Hog Sverige!! Hog Sverige!!! Noise envelopes the forest. 15,000 soldiers of Osson had gathered to celebrate the fall of Odense. Singing and celebrating during the cold winter of 1230 AD. Osson was a great Swedish warrior who reigned between 1230 AD and 1275 AD. At the war front, he was fearless, energetic, and brutal. His followers called him the great bear. In 1232, Osson and his soldiers dared the cold winter and invaded Vaasa in today's Finland. It was a huge task for Osson and his men because the Finns lived on the mountains. They could detect invasion easily. After three days of wars, Osson conquered Vaasa and his men looted all goods and assets available. On their way back to Sweden, a tragedy struck. They entered Vaasa by canoes. When they got back to the Baltic Sea, a tsunami had destroyed all their canoes. Swimming was not an option. Osson and his men wandered in the forest until he found a small village. He asked for the…1. Write on any THREE (3) functions of a Central Bank. B. Discuss TWO (2) ways in which a Central Bank controls money supply within a country C. Explain the term 'inflation'. D. Describe TWO (2) types of inflation. E. Assess TWO (2) ways in which inflation may have an impact on an economy.What is the main tool used by central banks to control the money supply? A. Fiscal policy B. Open market operations C. Exchange rate policy D. Price controls
