If a central bank issues large quantities of money, that?

There is only one correct answer per question. select the best answer, even when there are other correct answers.
1 If the Fed reduces a commercial bank s reserve requirements the commercial bank can
a lend the extra reserve to the Fed
b Use the extra reserve to create more money
c eliminate its need for overnight lending
d use the extra reserve amount for facility expansion
2 Economics is about
a efficiency
b how to best use money
c resource allocation
d deciding who is affected by taxation
3 The Fed Chairman is
a elected for up to a maximum of 3 terms
b is the principal government officer in charge of all economic policy
c accountable to the President
d none of the above
4 If a price ceiling is set on gasoline nationwide,
a the economy would experience unprecedented prosperity
b most oil companies would go bankrupt
c supply and demand for gasoline will be at dynamic equilibrium
d shortage of gasoline would be likely
5 Monetary policy
a involves running a surplus and deficit
b involves changing money supply and taxes
c is managed by the Treasury Department
d none of the above
6 If a central bank issues large quantities of money, that
a would be inflationary
b is because some central bank lack independence form political control
c is because they feel that the risk of inflation is less than the risk of economic breakdown
d All of the above

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