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Question
Depository institutions (DIs) play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy primarily because
A. loans to corporations are part of the money supply.
B. bank loans are highly regulated.
C. savings institutions provide a large amount of credit to finance residential real estate.
D. DI deposits are a major portion of the money supply.
E. U.S. DIs compete with foreign financial institutions.
Answer
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