18-101 Which of the Following Is a Mechanism Used by DI

question 44

Multiple Choice

18-101 Which of the following is a mechanism used by DI managers to impact withdrawal rates of NOW accounts.

• A)Implicit interest payments.
• B)Minimum balance requirements.
• C)Explicit interest payments.
• D)All of the above.
• E)There is no way to impact withdrawal rates.

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Definitions:

Political Compromises

Agreements reached by conflicting parties in which concessions are made by all involved to achieve a mutual solution.

Inflationary Gap

The situation where the total demand in an economy exceeds the total supply, leading to higher prices and inflation.

Equilibrium GDP

Equilibrium GDP is the level of output where aggregate demand matches aggregate supply, resulting in a stable economy without tendencies to change.

Multiplier

A factor that quantifies how an increase in spending leads to an increase in national income and output, typically greater than the initial amount spent.