A Bank Expands the Quantity of Money Directly by

question 336

Multiple Choice

A bank expands the quantity of money directly by

• A) taking in reserves in return for checking deposits.
• B) buying and selling bonds with the Federal Reserve.
• C) making loans.
• D) taking in reserves in return for time deposits.

---

Definitions:

Price Elasticity

A measure in economics to show how much the quantity demanded of a good responds to a change in the price of that good, indicating its responsiveness to price changes.

Demand Function

A mathematical expression that shows the relationship between the quantity of a good or service that consumers are willing and able to purchase at various prices.

Tickets

Documents or electronic codes that grant the holder the right to admission to an event, transport service, or other specific activities.

Price Elasticity

Evaluates the responsiveness of product demand to variations in its market price.