A Decrease in ________ Leads to an Equal ________ in the Monetary

question 129

Multiple Choice

A decrease in ________ leads to an equal ________ in the monetary base in the short run.

• A)float;increase
• B)float;decrease
• C)Treasury deposits at the Fed;decrease
• D)discount loans;increase

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Silver Future

A contract to buy or sell a specific amount of silver at a predetermined price at a specified time in the future, used as a financial instrument for speculation or hedging.

Spot Price

The current market price at which a particular asset, such as a commodity or currency, can be bought or sold for immediate delivery.

Profit

The profit achieved when the revenue from a business operation is greater than the expenses, costs, and taxes required for the operation.