If a country is confronted with the outflow of foreign exchanges and its central bank keeps selling foreign exchanges, the policy of ( ) can be adopted to stabilize money supply.
A: Increasing rediscounting and relending
B: Increasing the central bank notes issued
C: Selling government bonds
D: Raising required reserve ratio
A: Increasing rediscounting and relending
B: Increasing the central bank notes issued
C: Selling government bonds
D: Raising required reserve ratio
举一反三
- Which behaviors below will increase monetary aggregates ( ). A: The central bank purchases gold B: The central bank purchases foreign exchanges on foreign exchange market C: The central bank purchases government bonds D: Commercial banks sell foreign exchanges on foreign exchange market E: The central bank raises required reserve ratio
- Central Bank sometimes carry out equal foreign and domestic asset transactions in opposite directions to nullify the impact of their foreign exchange operations on the domestic money supply. This policy is called sterilized foreign exchange intervention.
- Which of the following changes to the central bank will increase the deposit reserve of commercial banks, assuming the assets of the central bank remain unchanged? A: Increase in deposits of the Ministry of Finance in the central bank B: Foreign deposits in the central bank increase C: Increase in central bank bond issuance D: Reduction of currency in circulation
- The following is the expansionary monetary policy is（ ）. A: Increase money supply B: The central bank conducts reverse repo operations on the open market C: Reduce the rediscount rate D: Lower the benchmark deposit rate E: Central Bank issues bonds
- To increase the Money Supply, a Central Bank can: ( ) A: Increase<br/>the Reserve Requirement. B: Reduce<br/>the Reserve Requirement. C: None<br/>of the above.