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Part 1 of 1 - 100.0/ 100.0 Points

Q

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e

s

t

i

o

n

1

o

f

1

0

.

0

/

1

0

.

0

P

o

i

1

0

n

t

s

The supply of money in the

U.S. economy is determined

primarily by

A

.

d

e

c

i

s

i

o

n

s

m

a

d

e

b

y

t

h

e

F

e

d

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r

a

l

R

e

s

e

r

v

e

a

n

d

t

h

e

U

.

S

.

T

r

e

a

s

u

r

y

.

B

.

t

h

e

a

c

t

i

o

n

s

o

f

t

h

e

F

e

d

e

r

a

l

R

e

s

e

r

v

e

a

n

d

t

h

e

b

a

n

k

i

n

g

s

y

s

t

e

m

.

C

.

c

o

n

s

u

m

e

r

s

a

n

d

t

h

e

b

a

n

k

i

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s

y

s

t

e

m

.

D

.

t

h

e

d

e

m

a

n

d

f

o

r

m

o

n

e

y

i

n

t

h

e

e

c

o

n

o

m

y

.

Q

u

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s

t

i

o

n

2

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f

1

0

1

0

.

0

/

1

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P

o

i

n

t

s

One of the essential functions

that a bank performs is

A

.

p

u

r

c

h

a

s

i

n

g

g

o

v

e

r

n

m

e

n

t

b

o

n

d

s

.

B

.

c

r

e

a

t

i

n

g

d

e

p

o

s

i

t

s

b

y

l

e

n

d

i

n

g

r

e

q

u

i

r

e

d

r

e

s

e

r

v

e

s

.

C

.

t

r

a

n

s

f

e

r

r

i

n

g

m

o

n

e

y

f

r

o

m

s

a

v

e

r

s

t

o

l

e

n

d

e

r

s

.

D

.

o

w

n

i

n

g

a

s

s

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t

s

l

i

k

e

r

e

a

l

e

s

t

a

t

e

.

Q

u

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t

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n

3

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f

1

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.

0

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1

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P

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1

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At lower interest rates the

A

.

m

o

n

e

y

s

u

p

p

l

y

i

s

i

n

d

e

t

e

r

m

i

n

a

t

e

.

B

.

m

o

n

e

y

s

u

p

p

l

y

i

s

l

o

w

e

r

.

C

.

q

u

a

n

t

i

t

y

o

f

m

o

n

e

y

d

e

m

a

n

d

e

d

i

s

h

i

g

h

e

r

.

D

.

q

u

a

n

t

i

t

y

o

f

m

o

n

e

y

d

e

m

a

n

d

e

d

i

s

l

o

w

e

r

.