6 Questions
Money supply refers to the quantity of money circulating in the economy
True
Open market operations involve the purchase and sale of monetary assets by the central bank
False
Reserves refer to deposits that banks have received but have already loaned out
False
Fractional-reserve banking is a system in which banks hold all deposits as reserves.
False
The reserve ratio is the fraction of deposits that banks hold as reserves.
True
The money multiplier is the amount of reserves generated with each unit of money in the banking system.
False
Test your knowledge of government finances and economics with this quiz on budget surplus, budget deficit, national savings, and private savings. Learn about the differences between these terms and how they impact the economy. Challenge yourself to use keywords like tax revenue, spending, borrowing, income, and consumption. Get ready to expand your understanding of macroeconomics!
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