During the German Hyperinflation of the 1920s,the Large Increases in the Money

question 76

Multiple Choice

During the German hyperinflation of the 1920s,the large increases in the money supply were generated by the German government

• A)significantly lowering the required reserve ratio to enable German businesses to obtain loans.
• B)significantly raising the required reserve ratio to reduce business loans.
• C)printing large quantities of German marks.
• D)selling large quantities of government bonds to the central bank,the Reichsbank.

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Definitions:

Annual Rate of Appreciation

The rate at which an investment or real estate increases in value over a one-year period, expressed as a percentage.

Quarterly Compounded

Refers to the process of calculating and adding interest to the principal amount of an investment or loan on a quarterly basis.

Nominal Rate

The stated or advertised interest rate on a loan or investment, not accounting for any compounding of interest within that period.

Quarterly Compounded

Quarterly compounded means that interest is calculated and added to the principal sum every quarter (three months), leading to growth in the investment or loan amount.