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IB Monetary Policies Flashcards | StudBud

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IB Monetary Policies

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Questions 11

Answers

1
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Expansionary missionary policies
Expansionary mandatory policies
Expansionary memory policies
Expansionary monetary policies
2
money supply will change in general as long as the loanable fund changes in the commerical banks
False
True
3
Decreasing interest rates will change the following AD
Increase NX
Increase C & I
Increase G
Increase C
4
Can central bank normally decide the market interest rates?
True
False
5
What is the aim of using monetary policies?
Less Unemployment
Lower inflation
Economic obectives
Economic growth
6
Which tools can be used in monetary policies?
Inflation rates & interest rates
Labour market reform & interest rates
Interest rates & exchange rates
Taxes & government spending
7
The government parliament is the one managing monetary policies
True
False
8
What should the government do if they want to increase the interest rates
Printing more money
Decreasing minimum reserve requirement
Increasing minimum lending rates to the commercial banks
Buying bonds from the commercial banks
9
This will cause
Interest rates to increase
AD to increase
SRAS to decrease
AD to decrease
10
Demand side policies are used to alter aggregate demand
True
False
11
What is NOT a method that government can do to change the money supply?
Open market operations (buying/selling bonds)
Changing minimum lending rates
Changing interest rate
Changing minimum reserve requirement