Asked by Jacob Thomas on May 09, 2024
Verified
Statement I: The dividing line between small denomination CDs and large denomination CDs is $10,000.
Statement II: Our money supply grows from 4 to 6 percent two out of three years.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Small Denomination CDs
Certificates of Deposit that are issued in relatively small amounts, making them accessible to individual investors.
Money Supply
The sum of monetary holdings in an economy, which includes cash, coins, and the balances in checking and saving accounts, at a specific instant.
- Identify the differences between real and nominal GDP and how they are linked to the growth in money supply.
Verified Answer
AA
Angelina Angelina1May 11, 2024
Final Answer :
D
Explanation :
The dividing line between small and large denomination CDs is typically $100,000, not $10,000, making Statement I false. Statement II's claim about money supply growth lacks specific, universally applicable accuracy, as money supply growth rates can vary widely depending on economic conditions and central bank policies, making it too general to be considered true without specific context.
Learning Objectives
- Identify the differences between real and nominal GDP and how they are linked to the growth in money supply.
Related questions
Whenever There Is Inflation,increase in Nominal Gross Domestic Product (GDP)overstates ...
Nominal Gross Domestic Product (GDP)is a Better Measure of Growth ...
If Real GDP Were to Grow Faster Than GDP There ...
As Long as There Is Some Inflation,GDP Will Rise _____ ...
Nominal GDP Measures Output of Final Goods and Services in ...