The transfer by check of a demand deposit written on one bank into another bank with no excess reserves gives the recipient bank additional liabilities

What will be an ideal response?


and excess reserves.

Economics

You might also like to view...

Quantity discrimination makes sense if

A) buyers of smaller quantities are more price sensitive than buyers of larger quantities. B) buyers of smaller quantities are less price sensitive than buyers of larger quantities. C) demand for the good is perfectly elastic. D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.

Economics

How much has government spending as a percentage of GDP been in recent decades?

a. 2 percent b. 10 percent c. 20 percent d. 35 percent

Economics

Which of the following is a macroeconomics topic?

a. wages of textile workers in the Northeast b. the cost of producing 10,000 bookcases c. the economy's annual growth rate d. market demand for fish e. effects of farm subsidies on food prices

Economics

Why is there often resistance to free trade?

A. Free trade does not benefit the economy as a whole. B. Specific groups may be hurt by free trade. C. Free trade usually hurts consumers. D. Free trade does not benefit the global economy.

Economics