Course name: Money and Banking

Course code: FIN410

Question: True and False questions

Choose whether the statement is true or false. Choose... - Choose... Choose... Choose... An open market purchase leads to an equal increase in the monetary base. The three major players in determining money supply are the non-bank public, banks and the central bank. High-powered money is also known as money supply. The Central bank controls all the monetary base. An increase in the excess reserve holdings leads to a decrease in money supply. According the the deposit creation model, the non-bank public does not hold any currency The money multiplier represents the amount by which money supply increases. The required reserve ratio is the only way the Central bank can affect money supply Choose... - Choose... - Choose.... Choose