36. When the central bank decreases the reserve requirement, what is likely to happen to the money supply?
a) It will decrease
b) It will increase
c) It will remain unchanged
d) It is not affected
37. Which of the following is an example of an expansionary monetary policy?
a) Central bank increasing reserve requirement
b) Central bank selling government securities
c) Central bank decreasing interest rates
d) Central bank raising taxes
38. Which of the following is an example of a contractionary monetary policy?
a) Central bank decreasing reserve requirement
b) Central bank buying government securities
c) Central bank increasing interest rates
d) Central bank cutting government spending
39. The velocity of money measures:
a) The rate at which money is spent in the economy
b) The rate at which money is printed by the central bank
c) The rate at which money is borrowed by the government
d) The rate at which money is exchanged for goods and services
40. When the velocity of money increases, it means that:
a) Money is being spent faster in the economy
b) Money is becoming more valuable
c) Money is being saved at a higher rate
d) Money is being printed at a faster rate
