Which of the Following Observations Is True

question 39

Multiple Choice

Which of the following observations is true?

• A)The central bank directly controls both inside and outside money.
• B)Outside money is that part of the money supply produced by the private banking system.
• C)Inside money refers to the quantity of notes and coin in the economy.
• D)Bulk of the money supply consists of inside money.
• E)Central banks cannot vary the quantity of outside money.

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