The existence of banks:
A) results in the money supply being larger than the amount of currency in circulation.
B) inhibits the creation of money.
C) makes the money supply equal to the amount of currency in circulation.
D) results in the money supply being less than the amount of currency in circulation.
Correct Answer:
Verified
Q98: Bank reserves are:
A) the money in bank
Q99: A reserve ratio is the:
A) proportion of
Q100: Bank reserves are:
A) the fraction of deposits
Q101: Which factor is NOT one of the
Q102: Suppose that a bank does NOT hold
Q104: Suppose a bank has excess reserves of
Q105: Probably the most important feature of deposit
Q106: Suppose that the reserve ratio is 20%.
Q107: The guarantee by the FDIC to reimburse
Q108: Capital requirements for banks do NOT serve
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