Which of the Following Increases the Quantity of Money

question 63

Multiple Choice

Which of the following increases the quantity of money?

• A)An individual's purchase of a government security from the Reserve Bank
• B)An increase in the government's budget deficit
• C)The Reserve Bank's purchase of a government security
• D)An individual's cash withdrawal from a bank

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Definitions:

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized.

Asset Purchase

An asset purchase involves buying the assets of a company, such as equipment, inventory, and property, rather than buying the company's stock.

Poison Pill

A strategy used by companies to prevent or discourage hostile takeovers by making the company less attractive to the potential acquirer.