ASS C 12 MONETARY POLICY

 

Chapter 12:

 

MONETARY POLICY – Assignments

 

Assignments for Macroeconomics Chapter 12

 

 

 

Assignment #1:
Prove that money is created when banks issue loans. Go through daily operations of banks and confirm your proof.

 

Assignment #2:
Explain why the monetary multiplier takes place. Give formula. Comment about its size.

 

Assignment #3:
Show the key role of bank’s excess reserves for money creation. Conclude with an indication on how to control money supply.

 

Assignment #4:
Explain open market operations. Show why this is the most popular tool for control of money supply. List minor tools.

 

Assignment #5:
List and explain the various shortcomings of monetary policy. Conclude with the policy dilemma. (Use historical examples).

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s