1. The transactions demand for money depends on (Points : 1)
the price level only.
the interest rate only.
real income only.
both the price level and real income.
both the interest rate and the price level.
Question 2. 2.The most important monetary tool of the Federal Reserve System is (Points : 1)
changes in the discount rate.
changes in legal reserve requirements.
loans to banks.
loans to the public.
open market operations.
Question 3. 3.The fact that money is legal tender increases its (Points : 1)
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