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    Financial Institutions Instruments and Markets
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    Exam 12: Government Debt, monetary Policy and the Payments System
  5. Question
    Which of the Following Is NOT True of Tightening of Monetary
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Which of the Following Is NOT True of Tightening of Monetary

Question 42

Question 42

Multiple Choice

Which of the following is NOT true of tightening of monetary policy?


A) Banks' supplies of funds are depleted through open-market operations
B) Interest rates fall
C) The dollar may increase in value
D) Bank lending is reduced

Correct Answer:

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