The Weekend Quiz – December 7-8, 2019

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.

Quiz #559

• 1. In the recent European Commission Autumn 2019 Economic Forecast we learned that many nations, still carrying elevated levels of unemployment were judged to be operating at over-full capacity. This tells us that the Commission's structural deficit estimates are typically:
• difficult to assess because their forecasts are subject to forecasting inaccuracy.
• biased downwards
• biased upwards
• 2. When a sovereign government issues debt it logically increases the financial assets that are held by the non-government sector $-for-$.
• False
• True
• 3. Open market operations as a means of ensuring that levels of bank reserves are consistent with the policy target become redundant if the central bank pays a positive interest rate on overnight reserves held by the commercial banks (ignore any reserve requirements in place when answering).
• False
• True
• Maybe

Sorry, quiz 559 is now closed.

You can find the answers and discussion here