Multiple Choice
Depository institutions (DIs) play an important role in the transmission of monetary policy from the central bank (Reserve Bank of Australia) to the rest of the economy primarily because:
A) loans to corporations are part of the money supply.
B) bank loans are highly regulated.
C) depository institutions provide a large amount of credit to finance residential real estate.
D) DI deposits are a major portion of the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
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