test15-16-2

test15-16-2 - Money and Banking Homework for Chapter...

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Money and Banking Instructor: Lili cai 07/16/07 Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A _____ in _____ reduces the money supply since it causes the _____ to fall. 1) _______ A) rise; reserve requirements; monetary base B) decrease; margin requirements; money multiplier C) rise; margin requirements; monetary base D) decrease; reserve requirements; money multiplier E) rise; reserve requirements; money multiplier 2) An increase in reserve requirements reduces the money supply since it causes 2) _______ A) reserves and the monetary base to fall. B) the money multiplier to fall. C) reserves to fall. D) both A and B of the above. 3) Open market sales _____ reserves and the monetary base thereby _____ the money supply. 3) _______ A) lower; lowering B) lower; raising C) raise; raising D) raise; lowering 4) Open market operations as a monetary policy tool have the advantages that 4)
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test15-16-2 - Money and Banking Homework for Chapter...

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