​In Equilibrium,low Risk Assets Earn a _______Return Than High Risk

question 42

Multiple Choice

​In equilibrium,low risk assets earn a _______return than high risk assets

• A)​higher
• B)lower
• C)similar
• D)​none of the above

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Definitions:

Monetary Multiplier

A factor by which a change in money supply is magnified or multiplied to result in a change in national income and output.

Actual Reserves

The total amount of funds that a bank has in its vault or deposited with the central bank, available to meet withdrawal demands or regulatory requirements.

Federal Reserve Banks

The regional banks of the Federal Reserve System, the central bank of the United States, which regulate and serve banks, execute monetary policy, and provide financial services.

Privately Owned

Businesses or properties owned by individuals or corporations rather than by the government or public entities.