17. If you were to survey central bankers from around the world and ask them what they believe the primary task of monetary policy should be, what would the most popular nswer likely be? A. leverage cycle B. bank runs C. fighting inflation D. bank supervision 18. Which of the following institutions determines the quantity of money in the economy as its most important task? A. U.S. Department of the Treasury B. Federal Open Market Committee C. Central Bank D. Federal Reserve Board of Governors 19. Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the central bank? A. discount requirements B. deposit requirements C. reserve requirements D. monetary requirements 20. Which of the following is considered to be a relatively weak tool of monetary policy? A. quantitative easing B. altering the discount rate C. reserve requirements D. reducing the money supply



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