Which of the following observations is truecentral bank, Ask an Expert

Finance

Which of the following observations is true?

Central bank directly controls both inside and outside money.

Outside money is that part of the money supply produced by the private banking system.

Inside money refers to the quantity of notes and coin in the economy.

Bulk of the money supply consists of inside money.

Central banks cannot vary the quantity of outside money.

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Financial Management, Finance

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