
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.
Correct Answer:
Verified
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Q16: Which of the following is the largest
Q17: The most influential participant(s)in the U.S.money market
A)
Q18: The Fed is an active participant in
Q19: Money market instruments issued by the U.S.Treasury
Q21: Commercial paper securities
A) are issued only by
Q22: If your noncompetitive bid for a Treasury
Q23: A negotiable certificate of deposit
A) is a
Q24: Banker's acceptances
A) can be bought and sold
Q25: The Fed can lower the federal funds
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