Deposit creation occurs when
A. A bank lends money.
B. A person takes money out of one bank and puts it in another bank.
C. A person takes money out of the banking system and holds it as cash.
D. A bank borrows dollars from the Federal Reserve.
Answer: A
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When playing a game in which players are in direct competition with one another, it is best to ________ a mixed strategy because the strategy is ________
A) use; predictable B) use; unpredictable C) avoid; predictable D) avoid; unpredictable
The marginal product generated by an additional unit of input times the price of the output is called:
A. the marginal revenue product. B. the value of the marginal product. C. Both of these statements are true. D. Neither of these statements is true.
If the demand curve for a product is vertical, then
A) the demand for the product is elastic. B) the demand for the product is perfectly elastic. C) only a certain amount of the product will be consumed regardless of price. D) the price elasticity of the product approaches zero.
Which of the following equals the ratio of the change in total revenues over the change in output?
A) total cost B) average revenue C) demand D) marginal revenue