When a person pays a loan back to a bank by writing a check for the amount due, demand deposits decline and the money supply is reduced.
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Q1: If the government requires banks to keep
Q2: Banks create money when they increase demand
Q3: Money functioning as a medium of exchange
Q4: Financial institutions are not very heavily leveraged,
Q5: People continue to value money because they
Q7: A reserve requirement of 10% implies a
Q8: Money is a more efficient store of
Q9: For society, more money means more wealth.
Q10: Reserve requirements exist primarily to prevent bank
Q11: The existence of inflation and other possible
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