Saturday Quiz – July 25, 2009

Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days.

There is a slight change of format this week just for a change.

See how you go with the following five questions. Your results are only known to you and no records are retained.

Quiz #18

• 1. If the flows from part-time employment to full-time employment are less than the flows from full-time employment to part-time employment then part-time employment must be rising.
• True
• False
• 2. The billions of US dollars that the Federal Reserve in America has pumped into reserves has made it easier for commercial banks to lend and kick start the economy.
• False
• True
• 3. Rising yields on government bonds will accompany a falling demand for the bonds relative to their supply into the bond markets.
• False
• True
• 4. A sovereign government holding foreign currency denominated debt is less exposed to exchange rate movements than a household which uses the currency because the government issues the currency and can credit bank accounts.
• False
• True
• 5. Luigi Pasinetti said that "investment brings forth its own saving". This insight tells you that government deficits will never result in financial crowding out.
• False
• True

Sorry, quiz 18 is now closed.

scroll down to find the answers and explanation below.

Quiz #18 answers

• 1. If the flows from part-time employment to full-time employment are less than the flows from full-time employment to part-time employment then part-time employment must be rising.

Answer: False

Explanation: You might read More gross flows movements between employment or post a comment if you want further information.

• 2. The billions of US dollars that the Federal Reserve in America has pumped into reserves has made it easier for commercial banks to lend and kick start the economy.

Answer: False

Explanation: You might read Fed chairman not quite getting it or post a comment if you want further information.

• 3. Rising yields on government bonds will accompany a falling demand for the bonds relative to their supply into the bond markets.

Answer: True

Explanation: You might read Nobel prize winner sounding a trifle modern moneyish or post a comment if you want further information.

• 4. A sovereign government holding foreign currency denominated debt is less exposed to exchange rate movements than a household which uses the currency because the government issues the currency and can credit bank accounts.

Answer: False

Explanation: You might read The world is going insane I think or post a comment if you want further information.

• 5. Luigi Pasinetti said that "investment brings forth its own saving". This insight tells you that government deficits will never result in financial crowding out.

Answer: True

Explanation: You might read Fed chairman not quite getting it or post a comment if you want further information.