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Which of the Following Statements About the Cash Rate Is

Question 39

Multiple Choice

Which of the following statements about the cash rate is FALSE?


A) The cash rate and the 10- year government bond rate trend in the same direction.
B) The higher the cash rate, the greater the quantity of money.
C) The cash rate is never less than the 10- year government bond rate.
D) The cash rate and the Treasury bill rate move closely together.

Correct Answer:

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