In Response to the Persistence of Recessionary Gaps,some Central Banks

question 86

Multiple Choice

In response to the persistence of recessionary gaps,some central banks have engaged in unconventional monetary policies such as

• A) increasing deposit insurance.
• B) reducing the velocity of money.
• C) increasing open-market operations.
• D) credit easing.
• E) fractional-reserve banking.

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Definitions:

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Capacity Utilization Rate

The percentage of potential economic output that is actually realized, indicating how fully a country or enterprise is using its productive resources.

Margin Rate

Typically refers to the interest rate charged by brokers for borrowing funds to invest in securities.

Sales Outlook

A forecast or projection of future sales performance based on current market trends, data analysis, and sales history.