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The Weekend Quiz – July 23-24, 2016

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.

1. The price at which the central bank provides reserves to the commercial banks is restricted by its target monetary policy rate.



2. It would be impossible for a central bank to directly purchase treasury debt to facilitate the national government’s fiscal deficit (that is, "monetise the deficit") while still targeting a positive short-term policy rate.



3. A sovereign national government, that is, one that issues its own floating currency faces no solvency risk with respect to the debt it issues.





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