Question
answer the mcq questions please: 1-The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the Kingdom
answer the mcq questions please:
1-The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the Kingdom of Bahrain is
a.the Bahrain stock Exchange
b.the Ministry of Economy and Finance.
c.the Central Bank of Bahrain.
d.the National Legislative Body of Bahrain
2-The monetary base (MB) consists of
a.currency in circulation and corporate stocks.
b.currency in circulation and reserves in banking system.
c.currency in circulation and corporate liabilities.
d.reserves and corporate bonds.
3-The four players in the money supply process include
a.banks, borrowers, borrowers, and the stock market.
b.banks, depositors, borrowers, and the Ministry of Foreign Affairs.
c.banks, depositors, borrowers, and the central bank.
d.banks, depositors, borrowers, and the Council of Representatives.
4-The formula linking the money supply (MS) to the monetary base (MB) is
a.MB = MS m.
b.MS = m MB.
c.MS = m/MB.
d.m = MS MB.
5-The main tools of the Central Bank are as follows:
a.all the options are correct
b.setting the reserve requirements on member banks.
c.lending at the discount rate to member banks.
d.open-market operations.
6-Tools of monetary policy include:
a.Change in reserve requirement
b.All the options are correct
c.Change in borrowed reserve
d.Open market operations
7-The amount of deposits that banks must hold in reserve is
a.vault cash.
b.excess reserves.
c.total reserves.
d.required reserves.
8-The formula for the true or complete money multiplier is
a.m = [1/(r + e + c)] MB.
b.m = 1/(r + e + c).
c.m = (1 + c)/(r + e + c).
d.m = (1 - c)/(r + e + c).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started