A bank can only make a loan if it has
A) excess reserves.
B) a creditworthy customer willing to pay a high interest rate.
C) permission from the Federal Reserve.
D) reserves equal to its deposits.
A
You might also like to view...
International capital flows in an open economy have the effect of
a. increasing the power of fiscal policy. b. reducing the power of fiscal policy. c. reducing the power of fiscal policy in an expansion, and increasing it in a contraction. d. increasing the power of fiscal policy in an expansion, and reducing it in a contraction.
Cross-country figures indicate that
a. countries with high rates of monetary growth also experience high inflation. b. countries with high rates of monetary growth experience low inflation. c. monetary growth rates and inflation are unrelated. d. inflation is primarily the result of restrictive monetary policy.
Prior to 1973 governments around the world operated on ______.
a. the dirty float system b. the Bretton Woods system c. a fully flexible rate system d. no exchange rate system
Other things being constant, if the marginal propensity to save (MPS) is 0.2, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)
A. increases by $80 million. B. decreases by $50 million. C. decreases by $500 million. D. increases by $1 billion.