1. 2. Which of the functions of money best explains why money is the most liquid
ID: 1768476 • Letter: 1
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Which of the functions of money best explains why money is the most liquid asset available? it is a medium of exchange. it is a store of value. it has intrinsic value. it is a unit of account. A problem that the Federal Reserve faces when it attempts to control the money supply is that the 10O-percent-reserve banking system in the U.S. makes it difficult for the Fed to carry out its monetary policy. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools. the Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount. the Fed does not control the amount of money that households choose to hold as deposits in banks.Explanation / Answer
answer a and c
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