Which of the following best describes the chain of events in the money creation process?
A) The monetary base increases. Banks acquire excess reserves which they loan out, increasing deposits and also the quantity of money. The new deposits then create additional excess reserves.
B) Currency is drained from the quantity of money into the banking system, where it is lent out. The loans are spent, increasing the currency drain and also the quantity of money.
C) Desired reserves increase, encouraging banks to seek new deposits. When the new depositors come in, desired reserves decrease and the quantity of money increases.
D) Low interest rates discourage people from holding currency. When they deposit the currency, interest rates rise, increasing the quantity of money.
A
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In some remote communities, there was only one employer in the local labor market several years ago, but the number of firms that hired workers in the market increased over time
What is the expected change in the local labor market as the number of employers increased (ceteris paribus)? A) Wages and employment increase B) Wages remain the same but employment increases C) Wages increase but employment remains the same D) Wages and employment decline
Why is the total profit curve shaped like a hill?
Under monopoly, resources are allocated as efficiently as in perfect competition
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. From an economic perspective, the zero discharge goal meets the efficiency criterion by accounting for both the benefits and costs of that objective. 2. According to available data, most water bodies in the United States have met the zero discharge goal. 3. The effluent limitations are set to maximize net benefits. 4. Because the effluent limitations are set uniformly, achieving a cost-effective solution is unlikely. 5. In order for the effluent limitations to achieve cost-effectiveness, the MACs of all polluters would have to be equal.