When a bank makes a loan by crediting the borrower's checking account balance with an amount equal to the loan:
A) money is created.
B) the bank gains new reserves.
C) the bank immediately loses reserves.
D) the Fed has made an open-market purchase.
Correct Answer:
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Q24: When the actual reserve-deposit ratio exceeds the
Q25: In a fractional-reserve banking system the reserve/deposit
Q26: There is $5,000,000 of currency in Econland,
Q27: Savings deposits are _ the M1 measure
Q28: The reserve-deposit ratio equals:
A)10 percent of bank
Q30: Bank reserves are:
A)currency and customer checking deposits.
B)currency,
Q31: Banks hold reserves:
A)to earn interest.
B)to increase profits.
C)only
Q32: Based on the following information, the
Q33: Assets of the commercial banking system include:
A)reserves
Q34: The components of M2 that are not
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