The banking system creates additional money by making loans equal to total reserves.
Answer the following statement true (T) or false (F)
False
The banking system cannot lend up to total reserves because the Fed requires banks to hold some minimum reserves.
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Which of the following will be included in the calculation of GDP using the expenditure method?
A) A bank's payment of interest to its customers B) A worker's wage C) A firm's payment of employee bonuses D) A domestic producer's export of clothes
When Susan Sneed paid Ralph Mentz three jars of homemade jam for repairing her rocking chair
a. GDP rose b. the money supply increased c. M1 rose but M2 fell d. currency was reduced e. an economic transaction occurred
Oil refiners often store some of their spring supply of gasoline because gasoline prices typically ______.
a. decline during the summer b. peak during the summer c. peak during the fall d. decline during the fall
What does monetary policy do?
(A) It mints new coins and prints bills. (B) It changes the way that taxes are collected. (C) It alters the supply of money. (D) It charters new banks.