Which of the following is true?
A) A majority of U.S.money, whether M1 or M2, is in the form of legal tender.
B) If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000.
C) Reserve requirements exist primarily to eliminate bank runs.
D) When there are two forms of money available, people prefer to spend the form of money that is more valuable.
Correct Answer:
Verified
Q223: If you go into a bank which
Q224: What are the inherent disadvantages of a
Q225: Which of the following is true?
A)Checking account
Q226: Ceteris paribus, expanding loans made by the
Q227: Which of the following is true?
A)Actual reserves
Q229: Suppose the XYZ bank has excess reserves
Q230: Even though the use of checks lower
Q231: Why is the money multiplier considered to
Q232: If the required reserve ratio was 25
Q233: When the required reserve ratio is decreased:
A)the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents