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The Decline in the Relative Importance of Transactions Deposits as a Source

Question 6

Multiple Choice

The decline in the relative importance of transactions deposits as a source of bank funds between 1970 and 1997 can be attributed to


A) the general increase in interest rates on other types of assets.
B) movements of transactions deposits to thrifts.
C) the extension of unlimited check writing privileges to many non-transactions deposits.
D) the increase in large-sized negotiable CDs as sources of bank funds.

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