Question

A. Which one of the following statements is true about the South African Reserve Bank?
1 The SARB uses accommodation policy to drain excess liquidity from the banking system. 2 It accepts deposits from individuals 3 It is not the only bank that can issue more 4 It is the banker to the government B. Which of the following statements is incorrect?
1 The quantity is determined by the interaction of the demand for money and interest rate 2 If interest rates are high, the quantity of money demanded will tend to be low 3 If interest rates are low, the quantity of money demanded will tend to be high 4 There is a positive relationship between interest rates and the quantity of money

Answer 1

A- 4;

B- 4