The Weekend Quiz – July 15-16, 2017

Welcome to The Weekend 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 #434

• 1. The non-government sector is immediately wealthier if the government issues bonds to match its net spending (relative to not issuing them at all).
• False
• True
• 2. When a country runs a small current account deficit and the private domestic sector is saving overall, the government cannot run a surplus.
• False
• True
• 3. Ignoring any reserve requirements, a central bank will eliminate any need to conduct open market operations to sustain its target policy rate merelyby paying a positive return on excess overnight reserves.
• False
• True

Sorry, quiz 434 is now closed.

You can find the answers and discussion here