Podcast
Questions and Answers
What can deficit financing help developing economies with?
What can deficit financing help developing economies with?
- Making up the deficiency of resources (correct)
- Increasing unemployment
- Reducing inflation
- Encouraging foreign investment
How does an increase in money supply impact economic growth according to the text?
How does an increase in money supply impact economic growth according to the text?
- Has no effect on economic growth
- Reduces economic growth
- Can accelerate economic growth within proper limits (correct)
- Always leads to runaway inflation
Why is it important to manage money supply according to the text?
Why is it important to manage money supply according to the text?
- To accelerate economic growth
- To decrease national income
- To discourage deficit financing
- To prevent runaway inflation (correct)
What does the term 'money supply' refer to?
What does the term 'money supply' refer to?
Why are the cash reserves held by the Government and banks excluded from the standard measures of money supply?
Why are the cash reserves held by the Government and banks excluded from the standard measures of money supply?
What is the rationale behind considering money supply as held by the public?
What is the rationale behind considering money supply as held by the public?
What is the primary role of money supply in an economy according to the passage?
What is the primary role of money supply in an economy according to the passage?
What are the main factors that determine the money supply in an economy?
What are the main factors that determine the money supply in an economy?
What are the various measures of money supply discussed in the passage?
What are the various measures of money supply discussed in the passage?
Why is the growth of money supply important according to the passage?
Why is the growth of money supply important according to the passage?
What is the objective that requires controlled expansion of money supply according to the passage?
What is the objective that requires controlled expansion of money supply according to the passage?
What type of inflation is mentioned in the passage as potentially stimulating investment?
What type of inflation is mentioned in the passage as potentially stimulating investment?
