Which of the Following Would Cause Demand for M1 to Increase

question 13

Multiple Choice

Which of the following would cause demand for M1 to increase?

• A)Banks make taking out home equity loans easier.
• B)The market for closed-end stock mutual funds becomes more liquid.
• C)Early withdrawal penalties for certificates of deposit are eliminated.
• D)Several major corporations default on their commercial paper.

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Definitions:

French Trading

The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within France or between France and other countries.

Indians

Indigenous peoples of the Americas or people from the country of India, context-dependent.

African Slaves

Individuals from Africa who were forcibly brought to other parts of the world, particularly the Americas, and subjected to forced labor and servitude from the 16th to the 19th century.

Early 17th Century

A period roughly between the years 1601 to 1630, marked by significant cultural, political, and technological changes worldwide.