When the public holds more wealth as currency, the process of multiple deposit creation is more powerful.
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Q8: When a bank sells a bond and
Q9: Bonds are assets for the Fed and
Q10: Reserves are a liability of the Fed.
Q11: The simple deposit multiplier is always greater
Q12: Federal Reserve notes are an asset of
Q14: Gold is part of high-powered money.
Q15: The monetary base is composed of the
Q16: Transaction deposits are part of the money
Q17: The monetary base is composed of gold
Q18: The money supply is comprised of deposits
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