F5 Monetary Policy UPDATED Exam Questions and CORRECT Answers
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Course
F5 Monetary Policy
Institution
F5 Monetary Policy
F5 Monetary Policy UPDATED Exam
Questions and CORRECT Answers
Money Supply
economist study the money supply by breaking it down into seperate categories
based on liquidity of money - CORRECT ANSWER- categories
investment accounts harder less liquid
savings accounts harder less liquid
deman...
F5 Monetary Policy UPDATED Exam
Questions and CORRECT Answers
Money Supply
economist study the money supply by breaking it down into seperate categories
based on liquidity of money - CORRECT ANSWER- categories
investment accounts harder less liquid
savings accounts harder less liquid
demand accounts
currency in circulation
Monetary policy is carried out when a central bank manipulates the money supply The FED -
CORRECT ANSWER- main goals Monetary policy
controlling inflation
reducing unemployment
Recession and growth
central banks use monetary policy to steer the economy away from recessions and toward
growth - CORRECT ANSWER- recession involve:
Identify the goals of the central bank when creating monetary policy. Check all that apply.
, reducing employment
influencing the business cycle
reducing economic growth
encouraging economic growth
avoiding periods of time where little credit is available - CORRECT ANSWER- influencing
the business cycle
encouraging economic growth
avoiding periods of time where little credit is available
cause and effect monetary policy
is based on expectation of cause and effect - CORRECT ANSWER- 6 rate of growth and
inflation
5 amount invested in the market
4 amount lent by banks
3 interest rates charged by banks
2 amount available for banks to lend
1 liquidity of the money supply
Which factor most directly influences how much money consumers are willing to borrow?
Expanisionary and contractionary approaches
types of monetary policy - CORRECT ANSWER- expansionary policy
contractionary policy
expansionary policy - CORRECT ANSWER- expanindg the liquidity of the money supply
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