Author Question: Bank regulation differs from monetary policy, because: a. Monetary policy is concerned with ... (Read 86 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
Bank regulation differs from monetary policy, because:
 a. Monetary policy is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but bank regulation is concerned with changing the monetary aggregates.
  b. Regulation is concerned with changing reserve requirements, open market operations, and the discount rate, but monetary policy is concerned with changing the domestic interest rates.
  c. Regulation is concerned with changing domestic interest rates, but monetary policy is concerned with changing reserve requirements, open market operations, and the discount rate.
  d. Regulation is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but monetary policy is concerned with changing the monetary aggregates.

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. Real GDP rises, and nominal value of the domestic currency falls.
  b. Real GDP falls, and nominal value of the domestic currency rises.
  c. Real GDP rises, and nominal value of the domestic currency remains the same.
  d. Real GDP rises, and nominal value of the domestic currency rises.
  e. There is not enough information to determine what happens to these two macroeconomic variables.



dawsa925

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

.D

Answer to Question 2

.A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

For a complete list of videos, visit our video library