1. To compensate for the collapse of intermediation and the fragility of financial markets during the 2007-2009 financial crisis, central banks deployed all but which of the following unconventional tools:

a. Quantitative easing

b. Forward guidance

c. Targeted asset purchases

d. Lowering interbank lending interest rate targets

2. The driving force in the balance-sheet channel of monetary policy mechanism is which of the following?

a. Asset diversity

b. Information

c. Bank net worth

d. Timing

3. All of the following could represent the transmission of monetary policy, except:

a. Net exports changing.

b. Income tax rates changing.

c. Households altering their spending on durable goods.

d. Firms altering their growth plans.

Answer rating: 100% (QA)

1 d Lowering inter b... View the full answer