Which of the following statements is correct?
A. When borrowers repay bank loans, the money supply is increased
B. When borrowers take out bank loans, the money supply is decreased
C. A single bank can legally lend an amount equal to its total reserves
D. A bank can only grant loans to customers if it has excess reserves
D. A bank can only grant loans to customers if it has excess reserves
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In the above figure, if the price is equal to $50, there is
A) a surplus of 200 units. B) a shortage of 100 units. C) an excess quantity demanded of 50 units. D) an inadequate supply of 100 units.
Economic goods are: a. only those commodities priced in monetary terms
b. scarce products that are created from scarce resources. c. the opposite of normative economic goods. d. not subject to scarcity.
In a market economy, goods are allocated to
A. all potential uses. B. all citizens on an equal basis. C. citizens with political power. D. citizens with both the desire and the willingness to pay for the goods.
A consumer good that is used up within three years is a(n)
A. durable consumer good. B. nondurable consumer good. C. service. D. investment.