When Monetary Policy Works by Affecting the Supply and Demand

question 57

Multiple Choice

When monetary policy works by affecting the supply and demand for credit,the mechanism is referred to as

• A)the exchange rate channel.
• B)the interest rate channel.
• C)the credit channel.
• D)the fiscal channel.

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Definitions:

Record a Check

The process of documenting the details of a cheque in financial records upon issuance or receipt.

Common Type

A classification or category that is widely recognized, accepted, or prevalent among others.

Endorsement

The act of giving one's public approval or support to someone or something, often seen in advertising, politics, and social media.

Issued on Bank Paper

refers to documents or certificates, typically related to financial transactions, printed on secure paper issued by a bank.