Which combination is correct? A) money multiplication process is theoretically unlimited, if r and c are 0 B) as a monetary aggregate, broad money includes bonds C) the larger a monetary aggregate is, the less liquid are its additional components D) M4 does not include minimum required reserves E) reserve requirements rate is the interest rate paid by Central Bank for commercial banks’ reserves a. A+D b. D+E c. A+C d. A+B e. C+D
Which combination is correct? A) money multiplication process is theoretically unlimited, if r and c are 0 B) as a monetary aggregate, broad money includes bonds C) the larger a monetary aggregate is, the less liquid are its additional components D) M4 does not include minimum required reserves E) reserve requirements rate is the interest rate paid by Central Bank for commercial banks’ reserves a. A+D b. D+E c. A+C d. A+B e. C+D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which combination is correct?
A) money multiplication process is theoretically unlimited, if r and c are 0
B) as a monetary aggregate, broad money includes bonds
C) the larger a monetary aggregate is, the less liquid are its additional components
D) M4 does not include minimum required reserves
E) reserve requirements rate is the interest rate paid by Central Bank for commercial banks’ reserves
a. A+D
b. D+E
c. A+C
d. A+B
e. C+D
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