تعريف النقود والقطاع المالي
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Questions and Answers

What is the primary function of money as stated in the text?

  • Being a unit of foreign exchange
  • Facilitating government transactions
  • Acting as a medium of exchange (correct)
  • Serving as a store of value

    • Which aggregates are included in the broader definitions of money supply such as M2 to M4?

  • Demand deposits only
  • Time deposits
  • Currency in circulation only
  • A wider set of assets treated as money (correct)

    • What does expansionary monetary policy aim to do?

  • Reduce money supply
  • Stabilize interest rates
  • Increase money supply (correct)
  • Control inflation rates

    • How can the central bank pursue a contractionary monetary policy according to the text?

    <p>Raising the rediscount rate</p> Signup and view all the answers

    What tool can the central bank use to adjust the money supply by reducing it?

    <p>Selling government securities in the open market</p> Signup and view all the answers

    How can an increase in money supply affect prices according to the text?

    <p>Lead to higher prices due to increased demand</p> Signup and view all the answers

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