When a commercial bank brings some notes to the RBA, the stock of ESF and the money base (MO) O A

Economics Nov 07, 2020

When a commercial bank brings some notes to the RBA, the stock of ESF and the money base (MO) O A. increases; increases B. is the same; decreases C. decreases; is the same O D. is the same; increases E. increases; is the same

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The answer is B.

The reduction of money in circulation reduces M0 anf it doesn't affect the stock of ESF

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