Which of the following best describes how banks create money?
A) Banks charge higher interest rates on loans than they pay on deposits.
B) Banks charge fees for providing financial advice.
C) Banks make loans from reserves.
D) Banks create checking account deposits when making loans from excess reserves.
D
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The health care system in Canada is referred to as ________, and is a system in which the provincial governments provide national health insurance to all Canadian citizens
A) a single-payer system B) a universal health insurance system C) socialized medicine D) a private health care system
Suppose Ed Sike, whom you've met in chapter 8, loses one of his $10 bills. What directly happens to GDP?
A) It increases by ten dollars. B) It decreases by ten dollars. C) It decreases by more than ten dollars due to an unavoidable multiplier process. D) It remains unchanged.
Assume the following exchange rates for today: $1=140 yen and 1 Danish krone = $0.10. We can conclude
A. 1 kr. = 14 yen. B. 1 kr. = 28 yen. C. 1 yen = 14 kr. D. 1 yen = 280 kr.
A decrease in the interest rate will
A. increase the demand for money alone. B. increase the demand for money and decrease the supply of money. C. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied. D. decrease the demand for money and increase the supply of money.