The linkages of the interest-rate-based transmission mechanism of monetary policy are summarized as follows:
A) change in the money supply ? change in speculative balances ? change in transactions balances ? change in planned investment ? change in aggregate demand.
B) change in the money supply ? change in planned investment ? change in government spending ? change in aggregate demand.
C) change in the money supply ? change in interest rates ? change in planned investment ? change in aggregate demand.
D) change in the money supply ? change in interest rates ? change in transactions balances ? change in government spending ? change in aggregate demand.
C
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Legal reserve requirements on banks in the United States today are primarily
A) a limitation on banks' ability to make loans. B) a protection for bank depositors against runs. C) a protection for bank shareholders against capital loss. D) an attempt to restrain the market power of banks. E) designed to control competition among banks.
Sources of stress include all but which of the following:
a. Hurricanes, tornadoes, floods and other such natural events b. Angry family members and friends c. Clutter, mental and physical d. All of the above are potential sources of stress