In addition to
a. performing financial intermediation, banks are important in that they help create a medium of exchange.
b. serving as financial markets, mutual funds are important in that they help create a store of value.
c. serving as stores of value, stocks and bonds also serve as media of exchange.
d. All of the above are correct.
a
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According to this Application, some economists noticed that the change in the value of the U.S
dollar was largely due to the change in interest rates, and the change in interest rates occurred because of the Fed's use of ________ to further stimulate the economy. A) quantitative easing B) open market purchases C) open market sales D) discount operations
Which of the following would cause the money supply to increase?
a. An open market purchase by the Fed. b. A reduction in the discount rate. c. A reduction in required ratios. d. All of these.