Commercial banks can increase the money supply by
A) accepting demand deposits
B) loaning out required reserves
C) loaning out excess reserves
D) selling bonds to the public
E) buying bonds from the Fed
Correct Answer:
Verified
Q109: If the Fed conducts an open market
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Q113: The demand deposit multiplier is the number
Q115: Which of the following is the relationship
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Q119: For any value of the required reserve
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