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When Inflation Rose in the Late 1970s

Question 20

Multiple Choice
When inflation rose in the late 1970s,

When inflation rose in the late 1970s,


A) consumers moved money out of money market mutual funds because their returns did not keep pace with inflation.
B) banks solidified their advantage over money markets by offering higher deposit rates.
C) brokerage houses introduced highly popular money market mutual funds, which drew significant amounts of money out of bank deposits.
D) consumers were unable to take advantage of higher rates in money markets because of the requirement of large transaction sizes.

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