A Bank Cannot Create Money Unless Its

question 173

Multiple Choice

A bank cannot create money unless its .

• A) desired reserves are greater than actual reserves
• B) required reserves are greater than actual reserves
• C) excess reserves are zero
• D) excess reserves equal deposits multiplied by the reserve ratio

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Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, influenced by international agreements, tariffs, and economic policies.

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, favoring preventive action in the face of uncertainty.

Non-Native Species

Species that are brought into a new habitat where they do not naturally occur, potentially causing harm to the native species and ecosystems.

Ecosystem

A biological community of interacting organisms and their physical environment.