The Eurosystem and the European System of Central Banks will coexist as long as there are member states of the European Unión ___ the euro zone
Outside
Inside
The other answers are correct
One of the key tasks of the European Central Bank is to direct ___ exchange operations
Domestic
Foreign
The other answers are correct
In December ___ the European Central Bank decided, in conjunction with the Federal Reserve, under a program called "Auction Mandate", to facilitate the improvement of the liquidity of the dollar in the eurozone to stabilize the money market
2008
2007
2001
Credit accounts are among the ___ operations of commercial banks
The other answers are correct
Passive
Active
In ___ the bank allows the customer a credit for a certain period of time and up to a certain amount, forcing the customer to pay a commission and return the desired amounts within the stipulated time limit
Loans
The other answers are correct
Credit accounts
The ___ market is that part of the capital markets that deals with the issuance of new securities
Primary
Secondary
Tertiary
Accuracy in a share price may ___ agency costs
Reduce
Increase
Keep
Monetary policy is based on the relationship between the ___ rates in an economy, (which is the price at with money can be borrowed), and the total money supply
Prices
Interest
The other answers are correct
An expansionary policy ___ the interest rate
Keep
Increases
Decreases
If private agents (consumers and businesses) believe that politicians are committing to lower inflation, they will anticipate prices to be ___ than otherwise possible
Lower
Higher
Equal
One of the forms of monetary policy that existed for many centuries was the decisions ___ paper money to create credit
To paste
To print
The other answers are correct
With the creation of the Bank of England the idea of monetary policy as ___ of executive action began to be established
Dependent
Independent
The other answers are correct
The establishment of central banks by industrialized nations was then associated with the desire to keep nations tied to the gold standard, and to trade in a narrow band with other gold-backed currencies. To achieve this goal, central banks, as part of the gold standard, began to set the ___ rates that they charged their own borrowers and other banks that required liquidity
The other answers are correct
Value
Interest
The Bank of Spain was born with the transformation of Banco de ___ into a Central Bank
San Fernando
Santiago
San Teodomiro
Cass Business School Research has also suggested that perhaps central bank ___ policies are causing the economic cycle
Restrictive
The other answers are correct
Expansive
A ___ group of people (economists) advocates a return to the gold standard
Great
Small
The other answers are correct
Many economists disagree with a return to the gold standard. Financing of the economy, both from the public and private sectors, would be limited by the amount of ___ available
Uranium
Petroleum
Gold
If the commercial bank discount or overdraft rate at the Central Bank is low enough, commercial banks can ___ central bank to meet the cash ratio and use the additional liquidity to expand their balance sheets, increasing the credit available to the economy
Borrow from
The other answers are correct
Lend to
If a central bank buys foreign currency (to countreact the appreciation of the exchange rate), the monetary base will increase. Therefore, to sterilize this increase, the central bank must also ___ public debt to contract the money base by an equal amount
The other answers are correct
Sell
Buy
In Spain, the Central Bank has been independent since ___, before joining the euro
1992
1996
1994
___ developing countries have deep markets for public debt
Few
The other answers are correct
A lot of
To institute a monetary authority that maintains a fixed exchange rate with a currency, or to adopt dollarizarion, ___ the hands of the interference government and, it is hoped, that such policies will import the monetary policy of the subject nation
Untie
Tie
The other answers are correct
___ market operations can be used to achieve an interest rate target
Closed
The other answers are correct
Open
In the ___, several countries used an approach based on constant growth in the money supply
1980s
1970s
1990s
Under dollarization, foreign currency (usually the US dollar, hence the term dollarization) is used freely as a means of exchanging ___
In parallel with the local currency
The other answers are correct
Exclusively
By raising interest rates under its control, a monetary authority can ___ the money supply
Keep
Expand
Contract
The primary objective of the European Central Bank is to ___
Maintain price stability within the Eurozone
Increase prices within the Eurozone
Decrease prices within the Eurozone
One of the key tasks of the European Central Bank is to take care of (guard) the foreign reserves of the ___
Eurosystem
European System of Central Banks
None of the other answers is correct
Commercial banks ___ operations consist of borrowing money
Active
Passive
The other answers are correct
Saving accounts are among the ___ operations of commercial banks
The other answers are correct
Active
Passive
In ___ the bank advances to a person the amount of a commercial paper
Credit accounts
Loans
Discount of bills of exchange
The __ market is the financial market where previously issued securities and financial instruments such as stocks, bonds, opcions and futures are bought and sold for a second or successive times
Secondary
Primary
Tertiary
Accuracy in a share price can make a hostile takeover a ___ risky proposition
Less
More
The other answers are correct
The beginnings of monetary policy come from the late ___ century, where it was used to maintain the gold standard
18th
19th
17th
Monetary policiy is described as ___ if the interest rate set by the central monetary authority is intended to create economic growth
Neutral
Restrictive
Accommodative
If an employee expects prices to be higher in the future, they will prepare (request a change) a contract with a ___ wage to match theses prices
High
Low
Equal
Monetary policy, for many centuries, was seen as a decision for ___
Banks
Governments
Businessmen
One of the goals of monetary policy was to ___ the value of the minting of coins
Destroy
Keep
The other answers are correct
Maintaining a gold standard required almost ___ interest rate adjustments
Daily
Weekly
Monthly
When central banking systems were established, the central bank's role as the "lender of ___ instance" was understood
Last
First
Median
According to the Cass Business School there has been a ___ of cycles in economies before central bank policies existed
Large amount
Lack
The other answers are correct
A small group of people (economists) advocates a return to the gold standard (the elimination of the legal tender status of the dollar and even the Federal Reserve). Their argument is basically that monetary policy is loaded with ___
Safety
Risk
The other answers are correct
The ___ Bank influences interest rates by expanding or contracting the monetary base, which consists of money in circulation and bank's reserves in deposits with the central bank
Bilbao, Vizcaya, Argentaria
Santander
Central
Lower cash ratio ___ loans
Increases
Maintains
Decreases
A central bank can lose control of domestic monetary policy when ___ also managing the exchange rate
The other answers are correct
Is
Isn't
In the ___, central banks began to adopt formal and public inflation targets with the goal of making the results, if not the process, of monetary policy more transparent
1970s
1980s
1990s
Countries that don't have deep debt markets ___ conduct open market operations
Can't
The other answers are correct
Can
Under the ___ target, the requested or established objective is to preserve the inflation defined under a particular standard such as the Consumer Price Index, within a desired scope or specific numerical objective
Prices
Inflation
The other answers are correct
Taylor's rule adjusts the interest rate in response to changes in ___
The inflation rate
The output gap
The other answers are correct
In the 1980s, several countries used and approach based on constant growth in the money supply, In the United States, this approach to monetary policy was suspended with the selection of Alan ___ as chairman of the Federal Reserve
Greenspan
Walker
Rickman
The gold standard can be seen as a special case of "___ exchange rate" policy
The other answers are correct
Fixed
Floating
High interest rates ___ savings
The other answers are correct
Discourage
Encourage
The primary objective of the European Central Bank is to keep inflation ___
Low
High
The other answers are correct
The ___ has the exclusive right to authorize the issuance of European banknotes
Eurosystem
European Central Bank
European System of Central Banks
Commercial banks ___ operations consist of lending money
Passive
Active
The other answers are correct
Deposits are among the ___ operations of commercial banks
The other answers are correct
Active
Passive
The ___ are commercial paper
Bills of exchange
Promissory notes
The other answers are correct
The secondary market is also known as ___
Aftermarket
Beforemarket
Backwardmarket
The exact price of a share gives an ___ allocation of external financing if debt or institutional loans are offered
Efficient
Inefficient
The other answers are correct
A policy is called ___ if it reduces the size of the money supply
Expansive
Restrictive
Neutral
Monetary policiy is described as ___ if it is neither intended to create growth nor combat inflation
Accomodative
Restrictive
Neutral
If wages are in fact lower ___
The other answers are correct
There isn't demand inflation
There isn't cost inflation
Monetary policy, for many centuries, was generally in the hands of the authorities with the power of ___
Mint
The other answers are correct
Issue of currency
One of the monetary policy goals was to ___ notes that would trade alongside coins
Collapse
Print
The other answers are correct
During the period ___ the industrialized nations established a central bank system
1920-1929
1929-1939
1870-1920
When central banking systems were established, it was recognized that interest rates ___ an effect on the entire economy
Had
Didn't have
The other answers are correct
Monetarist macroeconomists have sometimes advocated a simple growth of the money supply at a ___ and constant rate as the best way to keep inflation low and economic growth stable
High
Low
The other answers are correct
Some economists see another problem with our current monetary policy. The problem for them isn't that our money doesn't have anything physical to define its value, but that the fact of not having physical support has led to the ___ of money and credit
Contraction
Expansion
The other answers are correct
The first way in which the central bank can affect the monetary base is through ___ market operations or sales and purchases of second-hand public debt
The other answers are correct
Closed
Open
A central bank can only operate a truly independent monetary policy when the exchange rate is ___
Floating
Fixed
The other answers are correct
In the ___, many economists began to believe that making the central bank of a nation independend from the rest of the executive government is the best way to ensure optimal monetary policy, and those central banks that didn't have independence began to achive it
1960s
1980s
1970s
A central conjecture of Keynesin economists is that the central bank can stimulate aggregate demand in the ___ run
The other answers are correct
Long
Short
Often the monetary authority in a developing country ___ independent of the government
Isn't
The other answers are correct
Is
If financial institution lend at ___ interes rates, families will ask for money, increasing demand, to buy goods and services, and prices may raise if supply doen't increase in the same proportion, generating inflation (if it's a generalized phenomenon)
High
Low
The other answers are correct
The ___ target is similar to the inflation target except that the growth of the Consumer Price Index in one year is offset in subsequent years, such that, for a time, the price level, as a whole, doesn't change
Devaluation
Deflation
Price leve
The approach based on constant growth in the money supply is also sometimes called ___
Monetarism
Marxism
Keynesianism
With the gold standard, the price of gold could be seen as a special kind of "___"
Surrogacy ratio
Commodity Price Index
The other answers are correct
High interest rates ___ borrowing
The other answers are correct
Encourage
Discourage
The European Governing Council defines price stability as inflation (Harmonized Consumer Price Index) below, but close to ___%
2
3
4
Can the member states of the European Union issue coins?
No
Yes
The other answers are correct
Current accounts are within the ___ operations of commercial banks
Active
Passive
The other answers are correct
The discounts of bills of exchange is within the ___ operations of commercial banks
The other answers are correct
Passive
Active
___ is a corporation or mutual organization that provides trading facilities for stockbrokers to exchange stocks and other securities (stocks, bonds, etc.)
An industrial bank
A commercial bank
A Stock exchange
As a general rule, the greater the number of investors participating in a given market, and the greater the centralization of that market, the ___ liquid is the market
More
Less
The other answers are correct
The ___ is the agency in charge of supervising and inspection the Spanish Stock Exchanges and the activities of all participants in those markets
National Securities Market Commission
National Stock Market Agency
The other answers are correct
A policy is called restrictive if ___ the interest rate
Decreases
Increases
Maintains
Monetary policiy is described as ___ if expects to reduce inflation
Accomodative
Neutral
Strict
___ policy is primarily associated with interest rates and credit
Monetary
Fiscal
Commercial
With the advent of ___ came the ability to set a price between gold and silver, and the price of local currency relative to foreign currencies
The Conquest of America
Large commercial networks
The Russian Revolution
One of the goals of monetary policy was to prevent currencies form ___ circulation
Going in
Going out
The other answers are correct
The United States Federal Reserve was established in ___
1936
1929
1913
When central banking systems were established, it became clear that there was economic ___
Cycle
Spiral
Circle
Monetarist macroeconomists have sometimes advocated a simple growth of the money supply at a low and constant rate as the best way to keep inflation low and economic growth stable. However, when the Governor of the United States Federal Reserve, Paul ___ attempted this policy in October 1979, it was found to be impractical because of the highly unstable relationship between monetary agregates and other macroeconomic variables
Newman
Volcker
Verhoeven
Some economists see another problem with our current monetary policy. The problem for them is that a ___ proportion of society (including all governments) are perpetually in debt
Insignificant
Significant
The other answers are correct
If the central bank wants to lower interest rates, it ___ public debt
The other answers are correct
Sell
Buys
If the exchange rate is pegged or direct in any way, the central bank will have to ___ currencies
The other answers are correct
Sell
Buy
In the long run, however, money is neutral, that is, the quantity of money in circulation ___ the quantity of goods produced, as in the neoclassical model
Determine
Doesn't determine
The other answers are correct
Developing countries that want to establish a credible monetary policy can institute a monetary authority that maintains an __ exchange rate with a currency
The other answers are correct
Floating
Fixed
The inflation target is reached through periodic adjustment to the Central Bank's ___ rate target
Interest
The other answers are correct
Assessment
Something similar to the price level target was attempted by ___ in the 1930s, and appears to have contributed to the relative good performance of its economy during the Great Depression
Switzerland
Sweden
France
The fixed exchange rate with a fixed level can be seen as a special case of the banded fixed exchange rate where the bands are set to ___
The other answers are correct
One
Zero
In ___ (one of the most stable economies in the world), at the end of 2010, some economists proposed a constitutional reform where their currency would be backed 100% by gold as a means of defending themselves against the international financial crisis
Switzerland
Sweden
Norway
High interest rates ___ borrowing
The other answers are correct
Encourage
Discourage
The key task of the European Central Bank is to ___ monetary policy for the Eurozone
The other answers are correct
Define
Implement
___ contributes to supervising the banking sector of the European Union
The European Federal Reserve
The European Central Bank
The other answers are correct
Loans are within the ___ operations of commercial banks
Passive
Active
The other answers are correct
In ___ the user receives the total amount agreed from the beginning, forcing him to return this and all interest on certain days established before
The other answers are correct
Credit accounts
Loans
Types of markets
Primary and final
Primary, seconday and tertiary
Primary and secondary
Stock exchanges serve to ___ your money for a long period of time
The other answers are correct
Don't link
Link
___ policy is the process by which the government, central bank, or monetary authority of a country controls: (i) the supply of money, (ii) the availability of money, and (iii) the cost of money or interes rate, to achieve a group of objectives oriented to the growth and stability of the economy
Monetary
Commercial
Fiscal
A ___ policy increases the size of the money supply
Restrictive
Expansionary
Neutral
Since the ___, monetary policy has generally been formed separately (independently) from fiscal policy
1990s
1980s
1970s
One of the forms of monetary policy that existed for many centuries was decisions about currency ___
Minting
Fission
Fusion
The Bank of England was created in ___
1894
1694
1794
The establisment of ___ banks by industrialized nations was then associated with the desire to keep tied to the gold standard, and to trade in a narrow band with other gold-backed currencies
Commercial
Central
Industrial
The Bank of Spain was born in ___
1910
1900
1856
When central banking systems were established, economic theory began to understand the relationship of the ___ rates to the economic cycle
interest
Ratio
The other answers are correct
Milton ___ acknowledged that the money supply goal was less successful that he had expected, in an interview with the Financial Times on June 7, 2003
Keynes
Friedman
Erickson
Many economists disagree with a return to the gold standard. They argue that doing so would drastically ___ the money supply
Increase
Limit
The other answers are correct
If the central bank buys public debt (certificates of deposit, in Spain) ___ the amount of cash in circulation or bank reserves
The other answers are correct
Decreases
Increases
If the central bank buys foreign currency from a foreign investor who wants to invest in our country, the monetary base ___
Expands
Contracts
The other answers are correct
Independence typically means that the members of the committee that directs monetary policy have ___ terms
Short and fixed
Long and fixed
Short and variable
___ countries may have problems establishing an effective and operational monetary policy
The other answers are correct
Developed
Developing
Developing countries that want to establish a credible monetary policy can adopt the ___
Dollarization
The other answers are correct
Pesorization
The inflation target is reached through periodic adjustments to the Central Bank's interest rate target. The interest rate used is generally the ___ rate
Banking
Interbank
Extrabank
Since ___, no country has operated a monetary policy based on a price level target
2006
2005
2004
Under a system of ___ exchange rates maintained by a monetary authority, each unit of local currency must be backed by one unit of foreign currency (corrected for the exchange rate)
Fixed
Floating
The other answers are correct
A form of gold standard was widely used throughout the world before ___