Ceteris paribus,the money supply becomes smaller when:
A) The Federal Reserve reduces the reserve requirement.
B) An individual deposits currency into her transactions account.
C) An individual repays the money that he borrowed from a bank.
D) A bank reduces its excess reserves to make a loan.
Correct Answer:
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Q45: Money creation occurs when:
A) A person puts
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
Q51: Which of the following does not occur
Q52: Ceteris paribus,if Tamika pays off a loan
Q53: Banks are most profitable when:
A) Loans are
Q54: The reserve ratio is the ratio of:
A)
Q55: If there is no minimum reserve requirement
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