Q.16 Which of the following can decrease money supply? (i) Open Market Sale (ii) Open Market Purchase (i) Raising the Reserve Required Ratio (iv) Reducing the Reserve Required Ratio A. (i) and (iv) B. (i) and (iii) C. (i) and (iv) D. (ii) and (iii)

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Q.16 Which of the following can decrease money supply?
(i) Open Market Sale
(ii) Open Market Purchase
(iii) Raising the Reserve Required Ratio
(iv) Reducing the Reserve Required Ratio
A. (i) and (iv)
B. (i) and (iii)
C. (i) and (iv)
D. (ii) and (iii)
Q.17 Which of the following(s) is (are) true?
(1) A monetary policy target is a variable that the Fed can affect directly, which then affects
one or more of the Fed's policy goals.
(ii) Rising nominal GDP will increase the demand for money and short-term real interest
rates.
(iii) Buying a house during a recession may be a good idea if your job seems secure because
the Federal Reserve often lowers interest rates during a recession.
(iv) The Fed can not directly purchase corporate stocks from the market.
(v) The Fed can directly lower the inflation rate.
A. (i) and (ii) only
B. (i), (iii) and (iv) only.
C. (i), (iv), and (v) only
D. (i) and (iii) only
E. (i), (ii), (ii), (iv), and (v)
Transcribed Image Text:Q.16 Which of the following can decrease money supply? (i) Open Market Sale (ii) Open Market Purchase (iii) Raising the Reserve Required Ratio (iv) Reducing the Reserve Required Ratio A. (i) and (iv) B. (i) and (iii) C. (i) and (iv) D. (ii) and (iii) Q.17 Which of the following(s) is (are) true? (1) A monetary policy target is a variable that the Fed can affect directly, which then affects one or more of the Fed's policy goals. (ii) Rising nominal GDP will increase the demand for money and short-term real interest rates. (iii) Buying a house during a recession may be a good idea if your job seems secure because the Federal Reserve often lowers interest rates during a recession. (iv) The Fed can not directly purchase corporate stocks from the market. (v) The Fed can directly lower the inflation rate. A. (i) and (ii) only B. (i), (iii) and (iv) only. C. (i), (iv), and (v) only D. (i) and (iii) only E. (i), (ii), (ii), (iv), and (v)
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