If people held all their money as cash:
A) money would no longer be a financial liability of the Fed.
B) money would lose its value as a store of wealth.
C) banks would still be able to create money by making loans.
D) banks could not create money.
Correct Answer:
Verified
Q101: If the required reserve ratio is 0.10,
Q102: Assuming that the reserve ratio is 0.05
Q103: As the reserve ratio goes up, the
Q104: If the money multiplier is 5, what
Q105: If the reserve ratio is 0.1, the
Q107: Which institutions can create money?
A)The government and
Q108: The amount of money ultimately created per
Q109: The formula for the money multiplier is:
A)1/e
Q110: The higher the reserve ratio, the:
A)greater the
Q111: As the reserve ratio goes up, less
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