Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A)​Checking account deposits and time deposits constitute assets of banks.
• B)​M2 includes M1, plus saving accounts, time deposits (except for some large-denomination certificates of deposits), and money market mutual funds.
• C)​reserves times the required reserve ratio equals deposits.
• D)​Money is destroyed when banks make loans.

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Definitions:

Decision Variable

A variable, often under the control of a decision-maker, which influences the outcome of an optimization problem.

Market Structure

The organizational and characteristic features of a market, including the level of competition and number of participants.

Market Structure

Market Structure refers to the organizational and other characteristics of a market, largely influencing the nature of competition and pricing within the market.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.