Which would cause a growth in the money supply

Reference no: EM131996834

Question 1:
Which of the following would cause a growth in the money supply? Answer yes, no, or possibly. If your answer is 'possibly' then explain the circumstances under which the answer would be 'yes'.

(a) The selling of government securities to banks;;

(b) An increase in government expenditure, financed by borrowing from the banking sector;

(d) It is agreed by the Treasurer and the Governor of the Central Bank to reduce the target rate of inflation.

Question 2:

The following are the various elements within a nation's balance of payments account:

(i) Imports of goods (-)

(ii) Exports of goods (+)

(iii) Imports of services (-)

(iv) Exports of services (+)

(v) Other income outflows (-)

(vi) Other income inflows (+)

(vii) Capital transfers sent overseas from the nation (-)

(viii) Capital transfers to the nation from overseas (+)

(ix) The nation's investments overseas (-)

(x) Investment in the nation from overseas (+)

(xi) Short-term financial outflows (-)

(xii) Short-term financial inflows (+)

(xiii) Adding to reserves (-)

(xiv) Drawing on reserves (+)

Into which of the above categories would you put the following?

(a) DVD recorders imported into the nation from Japan;

(b) Insurance cover purchased in the nation by overseas residents;

(d) US car company sets up a factory in the nation;

(e) Some of the nation's residents take a holiday in Bali; Interest earned by the nation's residents on overseas assets;

(g) Running down the stock of foreign exchange in the Central Bank of the nation;

(h) Migrants to the nation transferring property to the nation;

(i) New deposits made in banks in the nation by overseas residents;

(j) The nation's palm oil is sold in the United Kingdom.

Reference no: EM131996834

Questions Cloud

What percentage of scores : What percentage of scores are greater than 145? Round to two decimal places.

Shape of the distribution of all such sample means : What will be the shape of the distribution of all such sample means, and why?

What is the percentage of scores greater : What is the percentage of scores greater than 106? Round to two decimal places.

Difference between the mean and the median : What is the difference between the mean and the median? Which would you use as a descriptive statistic with a skewed distribution?

Which would cause a growth in the money supply : Which of the following would cause a growth in the money supply? Answer yes, no, or possibly. If your answer is 'possibly' then explain the circumstances

Women from the population who become pregnant : a) If we randomly select two women from the population who then become pregnant, what is the probability both children will be boys?

What circumstances would ethically justify a company : Based on the response to Hurricane Katrina, what is the relationship between inefficiency and ethical behavior for leaders?

Can ambush marketing be both intentional and unintentional : Can ambush marketing be both intentional and unintentional? Explain. As a leader of an organization, would you allow the practice of ambush marketing? Explain

Employment relationship with employers : Human resource professionals need to ensure that employees have a voice in the employment relationship with their employers. From an HR perspective

User Account

All Pages