A Liquid Trap Can Be Avoided If the Central Bank

question 243

Multiple Choice

A liquid trap can be avoided if the central bank:

• A)pays interest on reserves.
• B)charges banks fees for keeping reserves.
• C)pays interest on bank deposits at banks.
• D)charges banks fees for making loans.

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Definitions:

Heart

A muscular organ responsible for pumping blood through the circulatory system.

Anatomical Position

A standardized stance in human anatomy where the body is erect, the feet are slightly apart, arms are at the sides, and the head and palms face forward.

Palm

The inner part of the hand extending from the wrist to the bases of the fingers.

Inferior

A term used to describe a position below or lower than another part of the body; opposite of superior.