In a corridor system, if the excess demand for reserves is zero when the overnight interest rate is lower than the central bank's target
A) the central bank should borrow to achieve its target.
B) the corridor system is not working.
C) the central bank should impose a reserve requirement.
D) the central bank should increase its deposit rate.
E) the central bank should lend to achieve its target.
Correct Answer:
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Q1: If R > q, then
A)the marginal benefit
Q2: The real return on bonds is
A)the return
Q3: To increase the nominal money supply, the
Q4: Money is useful in exchange when
A)credit transactions
Q5: The excess demand for overnight funds is
A)perfectly
Q7: Government printing of money to finance government
Q8: The nominal money demand is defined
Q9: Fiat money is
A)currency found in Europe.
B)Canadian currency
Q10: Use of money to save up for
Q11: The double coincidence of wants problem is
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