Banks create money in the economy by:
A. loaning out part of each deposit, which will be redeposited by someone else.
B. charging higher interest on loans than savings.
C. charging higher interest on savings than loans.
D. loaning out all of their deposits to borrowers.
A. loaning out part of each deposit, which will be redeposited by someone else.
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A borrower defaults on a loan when he stops making payments on the loan
Indicate whether the statement is true or false
When Sam Snerd decides to reduce his savings account by $20,000 to purchase a new car with cash, he is using money that is included in our definition of M1, M2 and M3
Indicate whether the statement is true or false
Which statement is not consistent with the law of supply?
A. More of a good will be supplied, the higher the price, other things constant. B. Quantity supplied of a good is inversely related to the good's price. C. Quantity supplied of a good is directly related to the good's price. D. Less of a good will be supplied, the lower the price, other things constant.
From 1995 to 2007 in the U.S., the median and average family wealth adjusted for inflation both:
A. Increased rapidly but fell sharply from 2007 to 2010 B. Stayed roughly the same, then rose from 2007 to 2010 C. Stayed at about the same level, then fell sharply from 2007 to 2010 D. Increased slowly, then accelerated from 2007 to 2010