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The Weekend Quiz – January 22-23, 2022

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. A currency-issuing government can always ensure there is first-class service provision to meet the demands of an ageing population.



2. For a nation running a small current account deficit (close to balance), the government fiscal position will always be in deficit if the domestic private sector is spending less overall than it earns.



3. Ignoring laws to the contrary, a central bank currently targetting a 2 per cent short-term policy rate, cannot directly purchase treasury debt to facilitate the national government’s fiscal deficit (that is, "monetise the deficit") and continue to maintain its policy rate at 2 per cent.





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