The Money Multiplier Will Decrease If the Currency Drain Ratio

question 54

Multiple Choice

The money multiplier will decrease if the currency drain ratio

• A)increases or the desired reserve ratio increases.
• B)decreases or the desired reserve ratio decreases.
• C)decreases and the monetary base increases.
• D)decreases or the desired reserve ratio increases.
• E)increases or the desired reserve ratio decreases.

Comprehend the impact of coupon rate and maturity on bond duration and price sensitivity to interest rate changes.

Identify key contributors to bond portfolio management theory and recognize their contributions.

Understand advanced strategies such as rate anticipation swaps, substitution swaps, and the use of convexity in portfolio management.

Understand the concept of bond duration and its calculation.

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