bring out the role of central bank as the controller money supply or credit

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ekkarill92 answered 2 years ago

If a central bank increases the money supply in response to an adverse supply shock, then...

If a central bank increases the money supply in response to an adverse supply shock, then which of the following quantities moves closer to its pre-shock value as a result? a. neither output nor the price level b. both the price level and output c. the price level but not output d. output but not the price level

In a modern money economy, the money supply is composed of central bank issued currency and...

In a modern money economy, the money supply is composed of central bank issued currency and certain privately issued bank deposits that are convertible into currency on demand and can be transferred as payments electronically or by check. Thus, the stock of money is composed of both central bank notes (currency) and private bank debts (transaction or checkable deposits). There exists another class of government issued debts that are promises to pay fixed amounts of money at a specified time(s)...

In a closed economy, the supply of money may be controlled by the Central Bank in...

In a closed economy, the supply of money may be controlled by the Central Bank in three ways: Reserve requirements , Open market operations, Discount rates. Outline each of the three ways.

If the central bank increases the money supply, then the nominal interest rate will ____ and...

If the central bank increases the money supply, then the nominal interest rate will ____ and the exchange rate will ____. A rise; appreciate B rise; depreciate C fall; appreciate D fall; depreciate

Suppose the central bank targets the money supply. As a result, the interest rate will ______...

Suppose the central bank targets the money supply. As a result, the interest rate will ______ and output will ______ following an increase in government spending A fall;rise B rise;fall C rise;rise D fall; fall

Which of the following is TRUE when the central bank buys bonds? Money supply decreases Money...

Which of the following is TRUE when the central bank buys bonds? Money supply decreases Money supply increases Interest rates increase Money multiplier increases

Suppose the European Central Bank decreases the growth rate of their money supply and the Federal...

Suppose the European Central Bank decreases the growth rate of their money supply and the Federal Reserve simultaneously decreases the growth rate of money supply as well. Working through the analytics involved explain the impact these policy interventions will have on the dollar-euro exchange rate.

1. How can a central bank influence the supply and demand for money in a country’s...

1. How can a central bank influence the supply and demand for money in a country’s economy? Why do the amount and price of money matter? Describe some of the connections between a country’s money supply and its international balance of payments.

5. If a macroeconomy has the money supply and aggregate demand increased by the Central Bank,...

5. If a macroeconomy has the money supply and aggregate demand increased by the Central Bank, what monetary policy is the Central Bank following? An expansionary monetary policy. A contractionary monetary policy. A tight monetary policy. 7. In the 1980s the U.S. Central Bank had the goal of increasing the interest rate and decreasing the money supply. To implement its goal the Central Bank uses a ________ monetary policy. contractionary relaxed expansionary 9. Central bank policy requires all banks to...

what are the three tools the central bank can use to change the money supply? describe...

what are the three tools the central bank can use to change the money supply? describe how the central bank can use each of these tools to either increase or decrease the money supply.

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