Everything Else Held Constant,an Increase in the Money Market Fund

question 94

Multiple Choice

Everything else held constant,an increase in the money market fund ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier.

• A)an increase;an increase
• B)no change;an increase
• C)a decrease;a decrease
• D)no change;a decrease

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Definitions:

S&P500 Value

The total market value of the 500 stocks that make up the S&P 500 index, a leading indicator of U.S. equities and a reflection of the performance of the large-cap sector.

Portfolio Value

The total worth of all the investments held in an individual's or entity's investment portfolio at a given time.

Arbitragers

Individuals or entities that try to profit from price differences of the same or similar financial instruments on different markets or forms.