If You Write a Check on Your Checking Account to Pay

question 51

Multiple Choice

If you write a check on your checking account to pay your rent which your landlord deposits in a bank,then

• A)the monetary base and the money supply will fall.
• B)the monetary base falls but the money supply remains unchanged.
• C)there is no change in the monetary base or the money supply.
• D)the monetary base and the money supply will rise.

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Definitions:

Underperformance

A return on an investment that is lower than the benchmark or expectations.

Direct-sold Funds

Direct-sold funds are mutual funds or similar investment vehicles that are offered directly to investors by the managing company, without the need for a financial advisor or broker.

Risk Premium

The extra return expected by an investor for holding a higher-risk investment over a risk-free asset.

Factor Portfolios

Investment portfolios constructed to have a high sensitivity to certain factors or characteristics expected to yield higher returns, such as size, value, or momentum.