Monetarists have tended not to use changes in the liquidity ratio as a means of controlling the money supply because
A) they feel that banks should be free from government restrictions.
B) a change in the liquidity ratio has only a very small impact on the money supply.
C) it takes a long time for the Bank of England to approve a change in the liquidity ratio.
D) only banks that are members of the Bank of England are subject to reserve requirements, and most banks do not belong to the Bank of England.
Correct Answer:
Verified
Q39: The banking system has £200 million in
Q40: A government wishing to operate a tighter
Q41: When economists refer to 'easy' monetary policy,
Q42: An example of a tight monetary policy
Q43: Assume that all commercial banks are making
Q45: Some argue that the demand curve for
Q46: The Bank of England is likely to
Q47: Which of the following actions by the
Q48: The economy's unemployment rate is 10% and
Q49: Owing to the liquidity trap
A) increases in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents