A commercial bank like Comerica creates money by
A) printing paper money.
B) earning profits.
C) selling corporate bonds.
D) making loans.
Answer: D
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Contractionary fiscal policy can lead to a depreciation of the nation's currency
Indicate whether the statement is true or false
Fluctuations in the relative demand for stock market mutual funds versus money-market mutual funds causes instability in the overall demand for
A) M1 but not M2. B) M2 but not M1. C) M2 and M1. D) neither M1 nor M2.
Which of the following is correct?
a. Federal Reserve purchases of securities will increase the reserves available to commercial banks. b. Federal Reserve purchases of securities exert upward pressure on interest rates in the short run. c. The Federal Reserve System determines the ratio of currency held by the public to the money supply (M1). d. Federal Reserve purchases of securities will decrease the reserves available to commercial banks.
The U.S. tariff law that set off an international trade war in the 1930s was the
A. Smoot-Hawley tariff. B. Bentsen-Gephardt tariff. C. Landrum-Griffin tariff. D. Taft-Hartley tariff.