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Which of the Following Is True

Question 79

Multiple Choice

Which of the following is true?


A) In late 1999 and early 2000, margin credit grew much faster than the overall appreciation of the stock market.
B) By early 2000, margin credit relative to the total value of stocks traded in the market was extremely high.
C) Raising margin requirements has been proposed as a monetary policy tool to reduce speculative behavior that could fuel a stock market bubble.
D) All of the above are true.

Correct Answer:

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