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1. If the money supply and price level are constant, then an increase in income will lead to the fact that: a) Demand for money

1. If the money supply and price level are constant, then an increase in income will

lead to the fact that:

a) Demand for money and interest rate will increase

b) Demand for money will decrease and interest rates will increase

c) The demand for money will increase and the interest rate will decrease

d) Demand for money and interest rate will decrease

2. Which central bank operation will increase the money supply?

a) Increase in the reserve ratio of banks

b) Discount rate increase

c) The sale of foreign currency to state and commercial banks

d) Purchase of government bonds on the open market

3. Which of the given combinations of fiscal and monetary policies will lead to the

greatest decrease in aggregate demand?

open market

operations discount rate Government spending

A Bonds purchase decreases increases

B Bond purchase Decrease Decrease

C Bond sale Increase Decrease

D Bond sale decrease increase

4. The equilibrium point is on the classic segment of the aggregate supply. If the

state increases spending, then

inflation unemployment

A will increase will decrease

B will decrease will increase

C will decrease without changes

D will increase without changes

5. If the government increases its expenses at full employment, then

a) Prices will fall

b) Prices will rise

c) There will be mass unemployment

d) Increase public debt

6. What monetary policy will stimulate the economy?

a) The central bank will increase the reserve ratio

b) The central bank will raise the discount rate

c) The central bank will buy government bonds in the open market

d) The central bank will sell bonds on the open market

7. If, with an increase in income, the share of this income paid in the form of tax

increases, then such a tax is called ...

a) Progressive

b) Regressive

c) Proportional

d) Indirect

8. If the central bank increases the reserve ratio, then ...

a) The average bank interest on loans will decrease

b) The money supply in the country will increase

c) Increase credit resources of banks

d) None of the above will happen

9. In which of the following cases does the supply of money increase?

a) The Central Bank increased the reserve ratio

b) You lent a significant amount of money to your buddy-businessman at 5% per

month

c) The Central Bank sold government bonds in the open market

d) The Central Bank provided a loan to a commercial bank

10. Let the demand for cash is 10% of the amount of deposits. The reserve ratio is

0.15. If the Central bank decides to increase the money supply by 330 billion

UAH, it should:

a) Increase the monetary base by 330 billion UAH.

b) To reduce the monetary base by 75 billion UAH.

c) Increase the monetary base by 75 billion UAH.

d) Increase the monetary base by 49.5 billion UAH

11. There is a deposit of UAH 50,000 in Almaz Bank. Reserve ratio is 20%. This

deposit will increase the amount of loans issued by:

a) Undefined value;

b) 40,000 UAH. Unit of measurement;

c) 10000 UAH. Unit of measurement;

d) 30000 UAH. Unit of measurement;

e) More than 30 000 UAH.

12. When the reserve ratio is 100%, the money multiplier is:

a) 0;

b) 1;

c) 10

d) 100

e) -1

13. Potential GDP is 150 billion UAH. Actual GDP is equal to 120

billion UAH. Tax revenues account for 10% of GDP. State purchases of goods and

services are equal to UAH 10.5 billion, and state transfers - UAH 2.5 billion.

Determine:

a) a surplus or deficit of the state budget;

b) a change in the balance of the state budget at full employment.

14. To finance the budget deficit, bonds worth 200 billion were issued.

The central bank bought 1/5 of these bonds in the secondary market. How will the

money supply in the economy change if the reserve ratio of banks is 20% and the

cash/deposit ratio is 0.2.

15. The reserve ratio of banks is 15%. Deposits of the banking system

are 5 times the mass of cash. The total amount of required reserves is 300 billion

UAH. Find supply of money in the economy.

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