Banks destroy money when they:
A. fail to reissue loans that are paid off.
B. clear checks against another bank.
C. accept deposits of cash into checkable accounts.
D. buy government bonds.
Answer: A
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An increase in supply will cause a decrease in price, which will cause an increase in demand
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. Approximately 25 percent of Americans live in poverty. B. American poverty is less severe than global poverty. C. American poverty is defined by homelessness and malnutrition. D. American poverty standards are below world poverty standards.
Refer to Scenario 10.2. What is the profit maximizing price?
A) $95.00 B) $5.00 C) $52.50 D) $10.00
During an inflationary period, the Federal Reserve is most likely to
a. lower the discount rate. b. buy government securities. c. lower reserve requirements. d. raise the discount rate.