Author Question: Bank regulation differs from monetary policy, because: a. Monetary policy is concerned with ... (Read 120 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?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

For a complete list of videos, visit our video library