Which of the Following Statements Best Completes the Following Statement

question 123

Multiple Choice

Which of the following statements best completes the following statement: "Over the past 40 years, the percentage(s) of assets for all financial intermediaries…"?

• A) controlled by banks has increased while the percentage for mutual funds has decreased.
• B) controlled by banks has decreased as has the percentage for mutual funds while insurance companies have increased their percentage.
• C) controlled by insurance companies and mutual funds has decreased and the percentage controlled by banks has increased.
• D) controlled by banks has decreased while the percentage for mutual funds has increased.

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Definitions:

Open Market

A freely competitive market where buyers and sellers can trade goods, services, and securities without excessive regulations, often facilitating price determination through supply and demand.

Money Supply

The total volume of money available in the economy, including cash, coins, and balances held in bank accounts.

Reserve Requirements

Reserve Requirements are regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used as a tool of monetary policy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.