In the Model of the Money Supply Process,the Depositor's Role

question 22

Multiple Choice

In the model of the money supply process,the depositor's role in influencing the money supply is represented by

• A)the currency holdings.
• B)the currency holdings and excess reserve.
• C)the currency holdings and borrowed reserve.
• D)the market interest rate.

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Definitions:

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specified period, often used by businesses to manage liquidity.

Payments Lag

Payments lag refers to the delay between the time when an expense is incurred and the time when the payment is actually made.

Cumulative Cash

The total amount of cash generated or accumulated over a period of time, often used in the context of a company's cash flow.

Bankers' Acceptances

Bankers' acceptances are short-term financial instruments issued by a company that banks guarantee; they are commonly used in international trade.