Question
Why would keeping currency, but limiting it to very small denominations be an acceptablecompromise? Select one: a.Because hoarding small denominations is very expensive for households
Why would keeping currency, but limiting it to very small denominations be an acceptablecompromise?
Select one:
a.Because hoarding small denominations is very expensive for households and banks, thus it is easier to reduce nominal interest rate to more negative levels
b.Because using small denominations makes the use of cash for criminal activities more difficult
c.Because it is harder for banks to switch to currency when interest rates on their deposits at the central banks fall
d.Because negative interest rates could reduce deflationary expectations amongst consumers
e.All except d
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