Multiple Choice
Monetarists have tended not to use changes in the liquidity ratio as a means of controlling the money supply because
A) they feel that banks should be free from government restrictions.
B) a change in the liquidity ratio has only a very small impact on the money supply.
C) it takes a long time for the Bank of England to approve a change in the liquidity ratio.
D) only banks that are members of the Bank of England are subject to reserve requirements, and most banks do not belong to the Bank of England.
Correct Answer:
Verified
Correct Answer:
Verified
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