An Increase in the Money Supply Can Reduce the Probability

question 53

Multiple Choice

An increase in the money supply can reduce the probability of financial distress by

• A)directly increasing the funds available to households and businesses.
• B)lowering the prices of U.S. Treasury securities.
• C)allowing the federal government to reduce its budget deficit.
• D)raising stock prices and the value of liquid financial assets.

---

Definitions:

Unconscionable

Referring to actions or terms that are excessively unfair or unethical to one party in a way that shocks the conscience.

Essential Purpose

The primary or most important goal or function of an object, policy, or legal contract.

Adequate Refund

A reimbursement that is fair and reasonable under the circumstances, often related to the return of purchased goods or services.

Consequential Damages

Refers to secondary or indirect damages that result from a breach of contract, extending beyond the direct damage or loss incurred.