Which of the Following Statements Is True

question 122

Multiple Choice

Which of the following statements is true?

• A)Money market mutual funds were originally introduced by the Federal Reserve Bank of New York.
• B)Money market mutual funds initially constituted serious competition to banks and thrifts for the deposits of savers.
• C)Money market mutual funds were not originally offered by commercial banks and still are not offered by them.
• D)Money market mutual funds represent a pooling of cash assets from many countries,like dollars,francs,and pesos.
• E)Money market mutual funds are not able to offer their customers check-writing privileges.

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Definitions:

Downward-Sloping Demand

A market situation in which the quantity demanded of a good or service decreases as its price increases, depicting an inverse relationship between price and demand.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.

Willingness to Pay

The maximum amount an individual or organization is willing to spend to acquire a good or service.

Consumer Surplus

The discrepancy between the financial amount consumers intend to spend on a good or service and the amount they end up spending.