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10. A common type of interest-rate swap is the plain vanilla swap. What is an interest rate swap and what are the specications of a
10. A common type of interest-rate swap is the \"plain vanilla swap\". What is an interest rate swap and what are the specications of a \"plain vanilla swap"? 11. A nancial institution that has a shortfall of reserves can restore its reserves through the sale of securities. Use a T-account to show how this happens. 12. Analyze the factors that determine the money multiplier. 13. Can the central bank use both interest rates and monetary aggregate targets simultaneously? 14. What is the difference between near money and high powered money? 15. Explain why the central bank may not have complete control of money supply and discuss the limitations of the simple deposit multiplier. END OF TEST
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