ebook 0) The rate vity (Author Lecture): Ch 12Money Creation and the Federal Res

Question

ebook 0) The rate vity (Author Lecture): Ch 12Money Creation and the Federal Reserve 5. The actual money multiplier is lower than the theoretical maximum because of _in the e onomy. - O A deficits O B. Inflation eakages O D. growth Submit 6. When the economy is money creation process O A strong ?B.weak ?C. transparent money leakage tends to rise; this tends to slow the Submit 7. The is the central bank of the United States. A. Bank of America ?B. US Department of the Treasury ?.u.s. Bark D. Federal Reserve Submit 8. The main function of a central bank is to: A assist banks in finding customers B. influence monetary policy

Explanation / Answer

5) C is correct

Actual money multiplier is lower than maximum because of the leakages.

6) B is correct

When economy is weak corruption is high and most of the increase in money does not reach the economy.

7) D is correct

Federal reserve is the central bank of US

8)B is correct

The main purpose of the central bank is to maintain a stable economy for which it uses monetary policy.

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