Everything Else Held Constant,an Increase in the Time Deposit Ratio

question 7

Multiple Choice

Everything else held constant,an increase in the time deposit ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply.

• A)an increase;an increase
• B)an increase;a decrease
• C)a decrease;an increase
• D)a decrease;a decrease

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another.

Negotiation

The process of discussing something formally to reach an agreement or compromise between parties.

Fraudulent

Fraudulent activities involve deceit or trickery, intentionally carried out for personal gain or to cause financial or personal harm to others.

Demand Instrument

A financial document that requires payment of the amount specified on it upon demand by the holder.