The money supply will grow faster through deposit creation when the required reserve ratio is:
A. high and banks hold excess reserves.
B. high and banks cannot find good customers to lend to.
C. low and banks are able to lend out all of their excess reserves.
D. low and banks are unable to loan out all of their excess reserves.
Answer: C
You might also like to view...
If you work 4 extra hours, and the slope of the curve showing the relationship between your income and work hours is 8, your income will increase by
A) $2. B) $4. C) $12. D) $32.
The table above gives some of the balance of payments accounts of the United States in 2019
a. What is the current account balance? b. What is the capital and financial account balance? c. What is the official settlements account balance? d. What is the balance of all account payments?
An unexpected fall in durable goods orders should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Now suppose competition among several market makers forces the spread down to $4 . How many goods are traded?
a. Four b. Five c. Six d. Seven