One of the essential functions a bank performs is that of
A. Participating in the stock market.
B. Purchasing government bonds.
C. Creating money by lending required reserves.
D. Transferring money from savers to borrowers.
Answer: D
You might also like to view...
If the U.S. government decides to increase military spending, a possible opportunity cost could be lower spending on education.
Answer the following statement true (T) or false (F)
Briefly explain the three functions of money
Briefly explain how differences in human capital may be the result of discrimination. Give an example.
What will be an ideal response?
For a fixed target real interest rate and target inflation rate, when inflation increases, the Fed ________ interest rates, hence ________ short-run equilibrium output.
A. decreases; decreasing B. increases; increasing C. increases; decreasing D. decreases; increasing