Deposit creation occurs when
A) A bank lends money.
B) A person takes money out of one bank and puts it in another bank.
C) A bank borrows dollars from the Federal Reserve.
D) A person takes money out of the banking system and holds it as cash.
Correct Answer:
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Q34: NOW and ATS accounts are included in
A)M1
Q35: Suppose Oscar withdraws $100 from his checking
Q36: Currency in circulation is included in
A)M1 only.
B)M2
Q37: One of the essential functions a bank
Q38: Which of the following appears in M2
Q40: Suppose Jason takes $150 he had in
Q41: Initially a bank has a required reserve
Q42: Which of the following sets the legal
Q43: Suppose a bank has $500,000 in deposits
Q44: Suppose a bank has $160,000 in deposits
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