quiz Macro 7 ENG

Is a share a monetary financial asset?

• Correct

• Incorrect

The money supply in the economy is

• Cash

• Bank deposits

• Sum of cash and bank deposits

What is cr?

• Cash share in money supply

• Deposit ratio to cash

• Cash to deposit ratio

Choose all functions of money

• Unit of account

• Medium of exchange

• Store of value

The central bank provides loans to the population

• Correct

• Incorrect

The monetary base is always less than the money supply

• True

• False

The central bank sets the reserve requirement ratio for commercial banks

• True

• False

Assume that 50% of the population keeps money in cash. The Central Bank has set the reserve requirement at 25%. Banks do not hold excess reserves. What is the money multiplier?