Which of these is NOT a leakage in money creation?
A) keeping cash under the mattress
B) foreigners holding U.S. dollars to diversify risk
C) banks holding more reserves than required
D) depositing a large jar of coins at the bank

Question

Quizplus · Accepted Answer

Depositing a large jar of coins at the bank does not constitute a leakage in money creation; instead, it increases the bank's reserves, potentially allowing for more money creation through lending.

Which of These Is NOT a Leakage in Money Creation