Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 27, Problem 6MCQ
To determine

To find:

The factor that does not assist commercial banksin creating money.

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When banks have deposits in checking accounts with the Fed, these deposits for the bank are __________________ of the commercial bank   a. Liabilities   b. Assets   c. Net Worth   d. Equity
When a bank makes a loan what happens to the amount of money in deposits it holds and to the quantity of money in the economy? A. Bank deposits decrease, the quantity of money increases. B. Bank deposits do not change, the quantity of money does not change. C. Bank deposits decrease, the quantity of money does not change. D. Bank deposits do not change, the quantity of money increases. Submit
Subtracting the value of a bank's liabilities from the value of its assets leaves its A. deposits. B. capital. C. net income. D. gross income.
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