A bank can create money by:
(a) Buying government bonds from the public;
(b) Increasing its reserves;
(c) Lending its excess reserves;
(d) Printing more cheque books.
Answer: (c) Lending its excess reserves;
You might also like to view...
In the figure above, the tax wedge is equal ________ per hour, the after-tax real wage rate is equal to ________, and the before-tax real wage rate is equal to ________
A) $20; $30; $35 B) $15; $20; $35 C) $20; $30; $20 D) $10; $30; $30 E) $30; $20; $35
According to the authors of your text, the phrase "property rights" can be substituted with the phrase
A) "property wrongs." B) "what people think they can get away with." C) "animal rights." D) "rugged individualism." E) "free market capitalism."
If discussing trade, it is ____ which matters, rather than ____. absolute advantage; comparative advantage
a. absolute advantage; comparative advantage b. comparative advantage; absolute advantage c. resource cost; comparative advantage d. the total amount of the good producible; comparative advantage
For market prices that are below the shut-down point of every firm in the market, the short-run market supply curve
a. slopes upward b. slope downward c. follows the horizontal axis d. rises at a 45-degree angle e. follows the vertical axis