The deposit-creation process can continue as long as
A) banks have required reserves
B) banks have excess reserves
C) the Fed sells bonds
D) banks sell bonds to the public
E) the required reserve ratio does not change
Correct Answer:
Verified
Q126: The formula for the demand deposit multiplier
Q127: Banks can create
A) income
B) power
C) wealth
D) money
E)
Q128: If the required reserve ratio is 0.2,what
Q129: The Federal Reserve tends to increase the
Q130: If the required reserve ratio is 0.2,the
Q132: Assuming that households do not change their
Q133: After the Fed makes an open market
Q134: Which of the following is the relationship
Q135: Reserves that the Fed injects into the
Q136: If the Federal Reserve sells $1,000 in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents