When It Comes to Choosing an Policy Instrument, Both the ________

question 10

Multiple Choice

When it comes to choosing an policy instrument, both the ________ rate and ________ aggregates are measured accurately and are available daily with almost no delay.

• A) three-month T-bill; monetary
• B) three-month T-bill; reserve
• C) overnight rate; monetary
• D) overnight rate; reserve

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Definitions:

Temporary Investments

Investments in securities or other assets that are intended to be sold within a short period, typically within a year.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Working Capital

The disparity between a firm's existing resources and its short-term obligations, showcasing its ability to fulfil financial commitments and operational prowess.

Current Assets

Resources anticipated to be transformed into cash, sold off, or used up either within a year or over the span of the business's regular operational cycle, depending on which is more extended.