When the general public uses money in checking accounts to purchase stock issued by corporations, the required reserves of banks are reduced.

Question

​When the general public uses money in checking accounts to purchase stock issued by corporations, the required reserves of banks are reduced.

Quizplus · Accepted Answer

When the general public uses money in checking accounts to purchase stock, the money simply moves from the buyers' checking accounts to the sellers' accounts, without directly affecting the total reserves banks are required to hold.

​When the General Public Uses Money in Checking Accounts to Purchase

When the General Public Uses Money in Checking Accounts to Purchase