The Weekend Quiz – September 10-11, 2016

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.

Quiz #390

• 1. Start from a situation where the external surplus is the equivalent of 2 per cent of GDP and the government fiscal surplus surplus is 2 per cent. If the government fiscal balance stays constant as a per cent of GDP and the external surplus rises to the equivalent of 4 per cent of GDP, then you can conclude that national income also rises and the private surplus moves from 0 per cent of GDP to 2 per cent of GDP.
• False
• True
• 2. If all bank loans had to be backed by reserves held at the bank then this would act as a brake on the capacity of the banks to lend and help maintain financial stability.
• False
• True
• 3. Raising taxation revenue is an essential element in a sovereign government's plan to implement and provision its socio-economic agenda.
• False
• True

Sorry, quiz 390 is now closed.

You can find the answers and discussion here