SOPHIA ECON102 Unit 3 Challenge 2 Updated/SOPHIA ECON102 Unit 3 Challenge 2 Updated

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Question 1 Which of the following statements regarding different types of money is true? a.)There are five main categories of money, based on liquidity. b.)Time deposits belong in the least liquid ... category of money. c.)A checking account is a form of M0. d.)Different types of money all have the same level of liquidity. Question 2 If the reserve requirement of a bank is 50%, then the multiplier effect will be ________ and $100 in M1 will increase the money supply by ________. a.)0.5; $50 b.)2; $200 c.)2; $50 d.)0.5; $200 Question 3 Which statement is NOT true the Federal Reserve controls the money supply? [Show More]

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