Quiz #36
- 1. The more reserves the commercial banking system has the more likely it is to lend.
- 2. The money multiplier concept is predicated on the notion that banks only lend when they have reserves and they get them by attracting deposits.
- 3. The saying "Investment brings forth its own saving" refers to the fact that the non-government sector is not sovereign in the currency and has to finance its spending.
- 4. The private domestic sector overall can never save if there is a current account deficit and the government continually balances its budget.
- 5. After a downturn where governments have run large budget deficits, the only way to reduce the stockpile of public debt is for the government to run surpluses in the future.
Quiz #36 answers
- 1. The more reserves the commercial banking system has the more likely it is to lend.
Answer: False
Explanation: Please read An unholy gathering is emerging for further information or post a question on the comments page for clarification.
- 2. The money multiplier concept is predicated on the notion that banks only lend when they have reserves and they get them by attracting deposits.
Answer: True
Explanation: Please read An unholy gathering is emerging for further information or post a question on the comments page for clarification.
- 3. The saying "Investment brings forth its own saving" refers to the fact that the non-government sector is not sovereign in the currency and has to finance its spending.
Answer: False
Explanation: Please read We are in trouble squirrels are falling down holes for further information or post a question on the comments page for clarification.
- 4. The private domestic sector overall can never save if there is a current account deficit and the government continually balances its budget.
Answer: True
Explanation: Please read I guess they didnt want to win the war for further information or post a question on the comments page for clarification.
- 5. After a downturn where governments have run large budget deficits, the only way to reduce the stockpile of public debt is for the government to run surpluses in the future.
Answer: False
Explanation: Please read The comeback of conservative ideology for further information or post a question on the comments page for clarification.