1 "Monetary base" is considered a more stable variable than its idividual components because: A-It can be measured more accurately B-There can be random or unpredictable shifts between currency and deposits C-The actual value of currency in circulation cannot be properly estimated Question 2 The US Federal Reserve Board has directly tied the conduct of its program of long- term asset purchases (known as Quantitative Easing) to labor market conditions- i.e. it plans to continue the program until it is evident that unemployment is declining at an acceptable rate. 1) True 2) False Question 3 The operational target of the Bank of Canada is ANominal overnight interest rates B-Real--ie. inflation adjusted overnight interest rates CThe yield on 30 Treasury Bills DThe yield on 30-year Government of Canada bonds Question 4 Although the euro is the standard currency for European regional trade and financial transactions, most European countries still maintain domestic currencies for local transactions () 1) True (2) False Question 5 When Country A's currency appreciates against that of Country B- then it necessarily follows that Country B's currency has depreciated against that of Country 1) True 2) False