The Degree to Which an Asset Can Be Acquired or Disposed

question 238

Multiple Choice

The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value is known as

• A)transaction deposits.
• B)a time deposit.
• C)liquidity.
• D)M2.

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Definitions:

Economic Instability

A situation where an economy experiences significant fluctuations in its economic activities, such as employment, output, and prices, often leading to uncertainty and unpredictability.

Activist Monetary Policy

Activist monetary policy refers to proactive measures taken by central banks to counteract economic fluctuations through adjusting interest rates and altering the money supply to stabilize the economy.

Monetarists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods, and that objectives of monetary policy are best met by targeting the growth rate of the money supply.

Real GDP

The market value of all final goods and services produced within a country in a particular period, adjusted for inflation.