41. Which of the following is a limitation of using monetary aggregates as a measure of money supply?
a) Different monetary aggregates can have different definitions
b) They do not capture all forms of money in the economy
c) They do not account for changes in velocity of money
d) All of the above
42. The monetary base consists of:
a) Currency in circulation and demand deposits
b) Currency in circulation and reserves held by commercial banks
c) Savings deposits and money market mutual funds
d) Treasury bills and corporate bonds
43. Which of the following is an example of a non-depository institution that can create money?
a) Commercial bank
b) Central bank
c) Investment bank
d) Insurance company
44. If the central bank engages in open market purchases, it will lead to a(n):
a) Increase in money supply
b) Decrease in money supply
c) No impact on money supply
d) Increase in interest rates
45. If the central bank engages in open market sales, it will lead to a(n):
a) Increase in money supply
b) Decrease in money supply
c) No impact on money supply
d) Lower inflation rates
