Monetary Policy Can Have Substantial Effects on the Economy Even

question 87

Multiple Choice

Monetary policy can have substantial effects on the economy even when nominal interest rates are very low

• A)since real rates are what affects borrowing and spending decisions.
• B)by improving borrower and bank balance sheets.
• C)by reducing transactions costs.
• D)only when the policy is substantial.

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Definitions:

Clears

typically refers to the process by which transactions are settled or reconciled between parties in trading or financial contexts.

Hold

A directive to keep, reserve, or delay an action or transaction, often used in financial and organizational contexts.

Ordinary Care

The degree of caution and attention to duty that a reasonably prudent person would use in similar circumstances.

Charge Back Rights

Charge back rights allow consumers to dispute a charge and potentially secure a refund for transactions found to be fraudulent or problematic.