PS7_Ans - Q5 see slide#12 for a similar example(note NOT...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Assessment 7 1 C 2 B 3 A 4 D 5 C 6 A 7 D 8 B 9 A 10 B Suggested explanations to selected questions: Q4 In a barter economy, we may not have a central bank. However, citizens may still be able to figure out ‘something’ as a generally acceptable means of payment. (e.g. gold in wartimes/ shells in ancient China).
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Q5 see slide #12 for a similar example (note: NOT identical!). Please take note on the various definitions on M1, M2, M3 etc. Q7 Simple deposit multiplier = 1/Required Reserve Ratio = 1/ 0.05 = 20 Q8 see slide #26. Q9 see slide #31. Q10 see slide #31, 32 and 33....
View Full Document

This note was uploaded on 04/22/2010 for the course ECONOMICS ECON1002 taught by Professor None during the Spring '10 term at Hong Kong Institute of Vocational Education.

Ask a homework question - tutors are online