The currency ratio (cr) is:
A) the ratio of currency held by the public to their loans.
B) the ratio of currency held by the public to their deposits.
C) the ratio of currency in circulation to the government bonds outstanding.
D) the ratio of cash reserves held by the banks to their deposit liabilities.
Correct Answer:
Verified
Q35: Banks create money by:
A) granting new loans.
B)
Q36: Fractional reserve banking mans:
A) banks hold cash
Q37: In a fractional-reserve banking system, the reserves/deposits
Q38: If the reserve/deposit ratio (rr) is 0.2
Q39: Banks create money, when banks:
A) extend loans
Q41: The reserve ratio (rr) in the banking
Q42: Which of the following statements is true?
A)
Q43: Consider a situation where the reserve ratio
Q44: Consider a situation where the reserve ratio
Q45: Assume that reserve ratio is 0.1 and
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