Depository Institutions (DIs)play an Important Role in the Transmission of Monetary

question 223

Multiple Choice

Depository institutions (DIs) play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy primarily because

• A)loans to corporations are part of the money supply.
• B)bank loans are highly regulated.
• C)savings institutions provide a large amount of credit to finance residential real estate.
• D)DI deposits are a major portion of the money supply.

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Definitions:

Negative Impact

Adverse effects or harm resulting from a particular action or event.

Divestitures

The act of selling off or otherwise disposing of a business unit or asset, often for strategic, financial, or regulatory reasons.

Restructuring

The process of organizing a company, department, or team in a new way to reduce costs or improve efficiency.

Public Relations

The professional maintenance of a favorable public image by a company, organization, or famous person.