Which of the Following Is Not a Mechanism Through Which

question 26

Multiple Choice

Which of the following is not a mechanism through which central banks can ordinarily provide increased liquidity to the economy?

• A) printing currency
• B) purchases of government securities from member banks
• C) reducing reserve requirements
• D) increased lending through the discount window
• E) all of the above mechanisms are available to the central bank for providing liquidity, and all are routinely used

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Definitions:

Access Time

The duration required to retrieve data from a storage device or memory.

Seek Time

The time it takes for the hard drive’s read/write heads to move over the surface of the disk to the correct track.

Latency

The delay before a transfer of data begins following an instruction for its transfer; it is often used to describe delays in network communication.

L1 Cache

The first level of cache memory in a computer, closest to the processor, designed to supply the processor with the most frequently requested data and instructions.