The Close Relationship Between M2 and Nominal GDP in the 1960s

question 26

Multiple Choice

The close relationship between M2 and nominal GDP in the 1960s and 1970s vanished from the 1980s through 2015. Which of the following contributed to this breakdown?
I. deregulation of the banking industry
II. introduction of new financial products (not included in M2) which allowed people to transfer funds into their checking accounts as and when needed
III. monetary policy lags

• A) I and II only
• B) II only
• C) II and III only
• D) I, II, and III

Understand the procedure for establishing and replenishing petty cash funds.

Acknowledge the importance of financial data security, particularly in the context of invoicing.

Use accounting formulas to assess the financial status and performance of a business.

Learn the principles of accounting and bookkeeping, including the documentation and analysis of financial transactions.

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Definitions:

Bone Density

The amount of mineral matter per square centimeter of bones, used as an indicator of osteoporosis and fracture risk.

Fractured Clavicle

A break in the collarbone, which is a common injury resulting from falls or direct impact to the shoulder area.

Moro Reflex

An automatic response in infants when they feel as if they are falling, involving spreading out the arms, unspreading them, and crying.

Allis Test

A clinical test used to check for hip dislocation or dysplasia, typically performed on infants by comparing the levels of the knees when bent.