How can money be “destroyed” in the same way that check able deposits expand the money supply?
What will be an ideal response?
A loan repayment or a withdrawal has the opposite effect on the money supply as a check able deposit. This effect is multiplied from the loss of additional loans that could be made on the withdrawn check able deposits or from the repaid loan funds. Essentially and generally, if the dollar amount of loans repaid is greater than the dollar amount of loans made, check able deposits decrease and the money supply decreases.
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The principal reason we no longer see huge herds of bison (popularly known as "buffalo") on the American prairies is because
A) the bison has been declared an endangered species. B) the bison have not been declared an endangered species. C) the bison were slaughtered in the 19th century in a wasteful manner. D) the bison were slaughtered in the 19th century in response to financial incentives. E) the people who own prairie land usually don't want bison on their property.
Which president said, "Prosperity is just around the corner"?
A) Herbert Hoover near the start of the Great Depression B) Franklin Delano Roosevelt near the start of the Great Depression C) George W. Bush near the start of the Great Recession D) Barack Obama near the start of the Great Recession
If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar. b. the dollar price of the Korean won (KRW) has risen by 10 percent. c. the percentage change in the dollar per Korean won exchange rate is 6 percent. d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment. e. the dollar has depreciated 16 percent against the Korean won.
A tax imposed on the buyers of a good will raise the
a. price paid by buyers and lower the equilibrium quantity. b. price paid by buyers and raise the equilibrium quantity. c. effective price received by sellers and lower the equilibrium quantity. d. effective price received by sellers and raise the equilibrium quantity.