When the actual reserve-deposit ratio exceeds the desired reserve-deposit ratio banks:
A) do nothing because this is a profitable situation.
B) stop making loans.
C) send the extra reserves to the central bank.
D) make more loans.
Correct Answer:
Verified
Q19: The main disadvantage of using money as
Q20: Money serves as a unit of account
Q21: Commercial banks create new money:
A)when they increase
Q22: Liabilities of the commercial banking system include:
A)reserves
Q23: The M2 measure of money consists of
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
Q29: When a bank makes a loan by
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