Depository Institutions (DIs)play an Important Role in the Transmission of Monetary

question 7

Multiple Choice

Depository institutions (DIs) play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy because

• A)loans to corporations are part of the money supply.
• B)bank and thrift loans are tightly regulated.
• C)U.S. DIs compete with foreign financial institutions.
• D)DI deposits are a major portion of the money supply.
• E)thrifts provide a large amount of credit to finance residential real estate.

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Definitions:

Sign

An object, quality, or event whose presence or occurrence indicates the probable presence or occurrence of something else.

Symptoms

Signs or indications of a condition, disease, or change in the body's state, experienced by an individual.

Signs

In psychopathology, what the clinician observes about a patient’s physical or mental condition.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, 4th Edition, Text Revision; a manual published by the American Psychiatric Association that outlines mental disorders and their symptoms.