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- Q.1.6 Which of the following will cause the demand curve for money to shift to theright?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation.When the interest rate falls , other things remaining the same, what change occurs in the market for money? The opportunity cost of holding money _______ and _______. A. rises ; the demand for money decreases B. rises ; the quantity of money demanded decreases C. falls ; the quantity of money demanded increases D. falls ; the demand for money increasesWhich of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.
- Why do the supply of money and the volume of bank loans both increase or decrease at the same time? Context: The supply of money and the volume of bark loans both increase or decrease at the same. Time because issuing new bank loans to the money supply, while calling in existing bank loans reduces the money supply.Please kindly assist with the following. Which one of the following statements is NOT true? (a) Money is the most liquid asset.(b) Money is a store of value.(c) Money is a unit of account.(d) Money is another term for income.Which of the following will cause the demand curve for money to shift to the right?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available. A budget deficit occurs when:(a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation. An example of an indirect tax is: (a) income tax. (b) secondary tax on dividends.(c) company tax.(d) value added tax.Which one of the following statements is INCORRECT? (2)(a) Provincial government forms…1. The demand curve for money will shift to the right because of a:A) fall in the interest rate.B) rise in real GDP.C) rise in the interest rateD) fall in real GDP. 2. The money demand curve is _________ because a lower interest rate ___________.A) upward-sloping; increases the opportunity cost of holding moneyB) downward-sloping; increases the opportunity cost of holding moneyC) upward-sloping; decreases the opportunity cost of holding moneyD) downward-sloping; decreases the opportunity cost of holding money 3. Suppose a bank has excess reserves of P800 and the reserve ratio is 10%. If Diana deposits P1,500 of cash into her checking account and the bank lends P600 to Russell, that bank can lend an additional:A) P1,550 B) P1,300 C) P2,000 D) P1,350 4. To increase the money supply, the central bank could:A) lower the discount rate.B) make open-market purchases.C) lower reserve requirements.D) lower the discount rate, make open-market purchases, or lower reserve requirements. 5. A…
- Which one of the following statements is NOT true? (a) Money is the most liquid asset.(b) Money is a store of value.(c) Money is a unit of account.(d) Money is another term for income.Q.1.6 Which of the following will cause the demand curve for money to shift to the right?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation.Q.1.5 Which one of the following statements is NOT true? (a) Money is the most liquid asset.(b) Money is a store of value.(c) Money is a unit of account.(d) Money is another term for income.Q.1.6 Which of the following will cause the demand curve for money to shift to theright?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation.Question 3 Part (a) Suppose that your bank's reserve ratio is 0.2 and you deposit $50,000 into the bank. Assume that the bank loans out the maximum amount it can, and people deposit all their money. What is the deposit multiplier? What is the total increase in deposits in the banking system? What is the change in the money supply? Part (b) Graph the demand for and supply of Australian dollars for British Pound. Suppose the Reserve Bank of Australia decides to follow an appropriate monetary policy to contain inflation. Show graphically and explain the effect of this policy on the demand and supply of dollars and the resulting change in the exchange rate of pounds for dollars.
- 43)Silver used as money was called _______ and ______ Select one: a. Commodity money; A discovery of silver would lead to deflation b. Fiat Money; A discovery of silver would lead to inflation c. Fiat Money; A discovery of silver would lead to deflation d. Commodity money; A discovery of silver would lead to inflationWhich statement is not correct? A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts. B. Money as a store of value can be held and exchanged later for goods and services. C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs. D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded. E. none of the aboveFigure 3: Msl.Ms1 Interest Rate (%) 10% 8% 6% Md 100 200 Money (S million) 13. Refer to Figure 3. If the money supply increases from MSo to MS1: a) money demand must decrease for the money market to return to equilibrium. b) the interest rate will decrease to 6%. c) the interest rate will increase to 10%. d) the money market will return to equilibrium only if the money supply is reduced to its original level.