Which of the Following Observations Is True

question 94

Multiple Choice

Which of the following observations is true?

• A)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.

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Definitions:

Bond Issue

The process of offering bonds for sale to potential investors, typically to raise capital for a corporation or government.

Redeemed

The act of repaying or buying back something, such as repaying a loan, fulfilling a promise, or converting a financial security.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest over the life of the bond.

Straight-Line Method

A depreciation technique which evenly spreads the cost of a fixed asset over its useful life.