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1) Virtually all of the growth of the monetary base is caused by decreases in the required reserve ratio increases in discount loans increases in

1) Virtually all of the growth of the monetary base is caused by

decreases in the required reserve ratio

increases in discount loans

increases in demand for currency by the public as represented by increases in the currency-deposit ratio

open market operations

55.

2) When deciding between domestic and foreign financial investments, investors typically consider

domestic and foreign interest rates and expected changes in the exchange rate

shifts in the relative demand for foreign and domestic goods

domestic and foreign budget deficits

domestic and foreign inflation rates and expected changes in the exchange rate

56.

3) Which of the following is the dominant means by which the Fed attempts to change the monetary base?

moral suasion

open market operations

discount loans

changes in the required reserve ratio

57.

4) During the 1980s banks lost loan business to the

savings-and-loan industry

corporate bond market

Eurodollar market

commercial paper market

58.

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