The Weekend Quiz – April 15-16, 2017

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. The payment of a positive return on overnight reserves held by the commercial banks equal to the current policy rate will tend increase the overall level of reserves held by the latter (ignore any reserve requirements in place when answering).



2. The payment of a positive return on overnight reserves held by the commercial banks equal to the current policy rate will tend to increase the volume of broad money in the system (ignore any reserve requirements in place when answering).



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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    This Post Has 3 Comments

    1. My naivite caused me to fall foul of Bill’s trick wording -forgot the Bill Mitchell technique of trick wording to dupe you into a false sense of secure knowledge!

      I pressed True and then it hit me that I hadn’t taken foreign currency debt into account!

      After a few years of trying to answer these questions I’m still getting caught out! Simplistic thinking never works!

    3. Answer the questions as though they are simplistic but before you lodge change all answers to the opposite and there will be a good chance of getting 100% lol

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