ECO343 Tma Solutions

ECO343

Question: The central bank can direct Deposit Money Banks on the maximum percentage or amount of loans (credit ceilings) to different economic sectors or activities?
Answer: TRUE

Question: Monetary policy is the ……. policy laid down by the central bank?
Answer: Macroeconomic

Question: Monetary policy …….. deals with how central bank carries out monetary policy?
Answer: Strategy

Question: In 1958, W. A. Phillips came up with an empirical negative relationship between rate of inflation and level of
Answer: Unemployment

Question: Which of the following is Fisherian quantity theory criticisms?
Answer: All of the above

Question: Which is an example of an Indirect Instrument of Monetary Policy?
Answer: All of the above

Question: Which of the following is not a limitation of Monetary Policy in Less Developing Countries?
Answer: All of the above

Question: By …….. of money is meant the purchasing power of money over goods and services in a country?
Answer: Value

Question: The keynesian concept of full employment involves the following condtions except
Answer: Reduction in the population

Question: According to Keynesian reformulated quantity theory of money all factors of production are in perfectly elastic supply so long as there is any unemployment?
Answer: TRUE

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