BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT considered a factor in money creation?
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the Federal Reserve’s supply and control of money
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banks’ use of money
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the demand for money
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the printing of currency by the Bureau of Engraving and Printing
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Explanation:
Detailed explanation-1: -2) The cash held by commercial banks Is not included in money supply.
Detailed explanation-2: -Answer and Explanation: The correct answer is b. Price mechanism. The price mechanism is not a function of money.
Detailed explanation-3: -Answer: Which of the following is not included in money supply? Explanation: Interbank deposits are not included in the money supply.
Detailed explanation-4: -a rise in interest rates on Government debt, unaccompanied by changes in other interest rates; a rise in the level of interest rates generally, associated with a credit squeeze; an improvement in the outlook for company profits; an increase in the level of income; and expectations of inflation.
There is 1 question to complete.