QUESTION 9

Which of the following components does NOT belong to the money base (M0) of a given country?

	A.	Notes held in the vault of the domestic central bank
	B.	Notes stored in the domestic banks' ATMs
	C.	Notes held by foreign tourists
	D.	Notes held by domestic banks
	E.	Notes held by domestic households

Which of the following statements is NOT correct?

	A.	A decrease in cash rate target lowers the horizontal part of supply for the reserves curve.
	B.	A decrease in cash rate target lowers the deposit facility rate.
	C.	A decrease in cash rate target raises the horizontal part of the demand for reserves curve.
	D.	A decrease in cash rate target shifts the corridor downwards.
	E.	A decrease in cash rate target lowers the lending facility rate.