Question: Choose the correct answer without explanation Answer the following (multiple choice) 1. The monetary base is: A. The sum of currency in circulation and commercial

Choose the correct answer without explanation

Choose the correct answer without explanation Answer the following (multiple choice) 1.

Answer the following (multiple choice) 1. The monetary base is: A. The sum of currency in circulation and commercial bank reserves B. The sum of currency in circulation and the currency held by commercial banks C. The sum of gold and foreign exchange held by the central bank D. The sum of real assets of the banking sector plus its net worth 2. What is not a function of money? A. Standard of deferred payment. B. Unit of account. C. Means of consumption. D. Store of value. 3. What distinguishes a bank from other financial institutions? A. Accepting time deposits as a courtesy B. Accepting demand deposits C. Lending D. Accepting loans and borrowings 4. Which one of the following statements is true? The primary objective of monetary policy is to maintain A. wealth B. exchange rate C. price stability D. Income equality 5. The principal source of a central bank's control over the money supply is... A. ... linkage between the reserves held by banks and sight deposits held at commerci B. ...the opportunity cost of holding money, the interest rate. C. ...the power to issue bank notes that circulate. D. ...the monopoly of legal gold and silver reserves

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