Answer to Question #314071 in Macroeconomics for TUMI

Question

Which one of the following statements is correct about the creation of money?

a.

Money is created by printing notes only.

b.

The quantity of money is dependent on demand for money and interest rate only.

c.

The SARB regulates the amount of money in circulation by controlling the interest rate.

d.

The SARB regulates the amount of money in circulation by controlling the inflation targeting range only and not the interest rate.

Answer 1

c. The SARB regulates the amount of money in circulation by controlling the interest rate.