Saturday Quiz – June 21, 2014

Welcome to the Billy Blog Saturday Quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.

Quiz #274

• 1. Bank lending moved from being reserve-constrained to capital-constrained once the prudential authorities relaxed reserve ratio requirements and the Bank of International Settlements introduced the Basel framework for capital adequacy.
• False
• True
• 2. A central bank cannot simultaneously reduce bank lending and maintain a given positive target interest rate by increasing the rate at which it provides reserves on demand to the commercial banks.
• False
• True
• 3. For a nation running a small current account deficit, the government fiscal balance will always be in deficit if the domestic private sector is spending less than it earns.
• False
• True

Sorry, quiz 274 is now closed.

You can find the answers and discussion here