test2008 - Sample test 2. Money, Banking and Financial...

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Sample test 2. Money, Banking and Financial Markets Dr. R. Minetti 1) Bank reserves are a……of the Federal Reserve i) Asset ii) Liability iii) Reserve iv) Deficit 2) The creation of new financial instruments has blurred the definition of money. This has implied that, relative to the past, now central banks focus on i) Broader monetary aggregates (such as M2 or M3) ii) Narrower monetary aggregates (such as M1) iii) Credit aggregates iv) Exchange rates 3) Unlike commodity money, fiat money i) Pays no interests ii) Is not publicly accepted iii) Has no intrinsic value iv) Is issued by banks 4) In Keynes an increase of the interest rate…. .the price of bonds i) Increases ii) Reduces iii) Leaves unaffected 5) In Baumol and Tobin theory a decrease of the interest induces people to withdraw money more i) Frequently ii) Rarely iii) Irregularly 6) In the neoclassical theory of investment the key variable for investment decisions is i) The shoe leather cost ii) The Tobin’s q iii) The marginal product of capital
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test2008 - Sample test 2. Money, Banking and Financial...

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