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Practice mode Money, Interest Rates And Output

Which statement about commodity money is true?

Correct answer B. Has intrinsic value

Explanation

Commodity money, such as gold or silver coins, is made of a material that has value in its own right, apart from its use as money.

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Question 01 Money, Interest Rates And Output

Banca Solida has always kept a reserve ratio of 25 percent. It is taken over by Gung-Ho Bank, which keeps a reserve ratio of 12.5 percent. If Banca Solida adopts its new owner’s practices, what happens to the money supply in its country?

Correct answer D. Money supply will increase because Banca Solida will increase its loans

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