Central bank directly controls both inside and outside money

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Reference no: EM13805707

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.

Reference no: EM13805707

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