Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern…
Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.
- 1. Bank reserves are maintained to ensure that all the cheques written every day clear when presented. If a bank doesn't have enough reserves then cheques drawn against it will bounce.
- 2. The crucial difference between a monetary system based on the gold standard world and a fiat currency monetary is that under the former system:
- excessive national government spending led to inflation.
- the national government had to issue debt to cover spending above taxation.
- the national government could not use net spending to achieve full employment.
- 3. When the national government's fiscal balance moves into deficit:
- One cannot conclude anything about the government's policy intentions.
- (a) and (b)
- It is a sign that the government is worried that unemployment is rising.
- It is a sign that the government is trying to stimulate the economy.
Sorry, quiz 534 is now closed.
You can find the answers and discussion here