Which of the Following Did Not Happen During the Onset

question 18

Multiple Choice

Which of the following did not happen during the onset of the Great Depression?

• A)The money supply fell as households took money out of bank deposits.
• B)The Fed conducted expansionary monetary policy.
• C)Stock prices fell about 90 percent.
• D)Disruption of the banking system made it difficult for some firms to obtain funds for investment.

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Definitions:

Duration

Duration measures a bond's sensitivity to changes in interest rates, representing the weighted average time to receive the bond's cash flows.

Payments

Transactions or transfers of money from one person or entity to another.

Duration

A metric indicating how the price of a bond or another type of debt instrument reacts to interest rate fluctuations, usually denoted in years.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.