"economics"exercise:Money multiplier

下载正保会计网校APP 订阅最新报考消息

来源: 正保会计网校编辑：小鞠橘桔 2021/03/04 14:10:14　字体：大小

学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！

Questions 1:

Which of the following statements regarding the money creation process in fractional reserve banking is correct?

A 、The reserve requirement is negatively related to the quantity of money created.

B 、The reserve requirement is positively related to the availability of credit.

C 、The money multiplier is unaffected by the reserve requirement.

Questions 2:

In an effort to influence the economy, a central bank conducted open market activities by selling government bonds. This action implies that the central bank is most likely attempting to:

A、 contract the economy by reducing bank reserves.

B、 expand the economy through a lower policy interest rate.

C 、contract the economy through a lower policy interest rate.

View answer resolution

【Answer to question 1】A

【analysis】

A is correct. The amount of money that the banking system creates through fractional reserve banking is a function of the money multiplier, which is expressed as 1 divided by the reserve requirement. Therefore, the smaller the reserve requirement, the greater the money multiplier effect on money creation.

B is incorrect because the reserve requirement multiplied by the deposit amount results in the amount of asset reserve that the bank is required to hold relative to the deposit liability. The higher the reserve requirement, the lower the net amount of the deposit (equal to the total deposit amount less the amount of required reserve) available for lending.

C is incorrect because the money multiplier is expressed as 1 divided by the reserve requirement. A higher reserve requirement results in a lower money multiplier, whereas a lower reserve requirement results in a higher money multiplier.

【Answer to question 2】A

【analysis】

A is correct. Selling government bonds results in a reduction of bank reserves and reduces their ability to lend, causing a decline in money growth through the multiplier mechanism and hence a contraction in the economy.

B is incorrect. Central bank selling of bonds is not expansionary.

C is incorrect. Central bank selling of bonds will reduce the money supply through its impact on bank reserves, which will result in a higher, not lower, interest rate.

成功=时间+方法，自制力是这个等式的保障。世上无天才，高手都是来自刻苦的练习。而人们经常只看到“牛人”闪耀的成绩，其成绩背后无比寂寞的勤奋。小编相信，每天都在勤奋练习，即使是一点点的进步，大家一定可以成为人人称赞的“牛人”。

点击了解更多CFA考试资讯>>

点击了解CFA无忧直达班>>

上一篇："economics"exercise:monopolistic competi...

下一篇："economics"exercise:Current account defi...