A reduction in the required reserve ratio has the instant effect of:
a. Increasing the monetary base.
b. Increasing total bank reserves
c. Increasing excess reserves.
d. Increasing bank shareholders' equity.
e. Decreasing bank shareholders' equity.
Question 2
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive).
b. The GDP Price Index and reserve-related (central bank) transactions remain the same.
c. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same.
d. The GDP Price Index rises, and reserve-related (central bank) transactions become more positive (or less negative).
e. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same.
Punnett square illustrating the genotypes underlying a 9 : 3 : 3 : 1 ratio
effect of light on plant
The Placebo Effect
Friction significantly influences airflow near Earth’s surface, but its effect is negligible at ...
Actions of mutM, mutT, and mutY gene products in countering the mutagenic effect of 8-oxoguanine -oG
High school science classes are required to use deductive logic