Quiz #411

• 1. A currency-issuing government always has the capacity to ensure there is first-class services to meet the demands of an ageing population.
• False
• True
• 2. Introducing a system of 100 per cent reserve requirements on the commercial banks would give the central bank control of the money supply.
• False
• True
• 3. When a nation is running a small current account deficit (close to balance), the government's fiscal balance will always be in deficit when the domestic private sector is spending less than it earns.
• False
• True

Quiz #411 answers

• 1. A currency-issuing government always has the capacity to ensure there is first-class services to meet the demands of an ageing population.

Answer: False

• 2. Introducing a system of 100 per cent reserve requirements on the commercial banks would give the central bank control of the money supply.

Answer: False

• 3. When a nation is running a small current account deficit (close to balance), the government's fiscal balance will always be in deficit when the domestic private sector is spending less than it earns.

Answer: True