Money creation occurs when:
A) A person puts cash in a bank.
B) A person deposits a payroll check in their checking account.
C) Banks make loans to borrowers.
D) The Federal Reserve increases the reserve requirement.
Correct Answer:
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Q40: The smallest component of the basic money
Q41: Which of the following requires U.S.banks to
Q42: Deposit creation occurs when:
A) A person puts
Q43: The reserve requirement directly limits the ability
Q44: Required reserves represent:
A) A leakage from the
Q46: The assets held by a bank to
Q47: If you deposit $1,000 in your checking
Q48: When a bank makes a loan:
A) It
Q49: The term fractional reserves refers to:
A) The
Q50: Ceteris paribus,the money supply becomes smaller when:
A)
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