The Increase in the Currency-To-Deposit Ratio During the 1960s Was

question 52

Multiple Choice

The increase in the currency-to-deposit ratio during the 1960s was probably due to

• A)fear of bank failures.
• B)limitations imposed on deposit insurance.
• C)high marginal tax rates.
• D)rising interest rates.

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Definitions:

Investing

is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Rate Of Return

Earnings or losses experienced by an investment within a chosen period, measured as a percentage of the investment’s purchase cost.

Heirs

Individuals legally entitled to inherit a deceased person's assets.