Which statement most accurately describes the effect financial technology has had on the demand for money in the United States?
A) Advances in financial technology have all increased the demand for money.
B) Some advances in financial technology have increased the demand for money while others have decreased it.
C) It is not possible to tell what would be the effect because financial technology has not changed over the past three decades.
D) Advances in financial technology have all decreased the demand for money.
E) Advances in financial technology have had no effect on the demand for money.
Question 2
If official reserves increase, then we know that the
A) capital and financial account is positive.
B) official settlements account balance is negative.
C) capital and financial account and the current account must sum to zero.
D) capital and financial account is negative.
E) official settlements account balance is positive.
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