Banks
A. have no role in the money creation process and never have.
B. have no role in the money creation process, though they once did.
C. create money because they take deposits and make loans.
D. create money because they are the ones that print it.
Answer: C
You might also like to view...
Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180In the long run, the number of firms in this monopolistic competitive industry will most likely
A. stay the same. B. decrease. C. increase. D. cannot be determined from the given data.
All points on the production possibilities frontier
A) are production inefficient. B) achieve allocative efficiency. C) are production efficient but only one point achieves allocative efficiency. D) are allocatively efficient but only one point achieves production efficiency. E) are allocatively inefficient.
If the interest rate is 10 percent, the present value of $400 to be received two years from today is about
A) $331. B) $484. C) $364. D) $440.
Pegging a country's exchange rate to the dollar can be advantageous in all of the following situations except
A) if investors believe the dollar to be more stable than the domestic country's currency. B) if a country wishes to conduct independent monetary policy. C) if imports are a significant fraction of the goods the country's consumers buy. D) if the country has extensive trade with the United States.