When does money creation occur?
a. Banks hold required reserves.
b. Individuals hold checkable deposits.
c. Banks make loans with their excess reserves.
d. Individuals take out loans.
c. Banks make loans with their excess reserves.
You might also like to view...
What is a tariff?
What will be an ideal response?
Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?
a. a large and unexpected exchange rate appreciation b. a large and unexpected interest rate increase c. a large and unexpected exchange rate depreciation d. a large and unexpected increase in foreign investments
If the inflation rate turns out to be greater than was is expected to be, the clear winners are
A. businesses. B. people on fixed incomes. C. lenders. D. borrowers.
The economic policy of the U.S. government could have been described as laissez-faire until about
A. 1860. B. 1900. C. 1933. D. 1945.