The Money Creation Process Begins When

question 96

Multiple Choice

The money creation process begins when

• A)desired reserves increase because of an increase in deposits.
• B)the quantity of money increases.
• C)banks have excess reserves.
• D)banks lend reserves.
• E)bank deposits increase.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure how the other tested subjects do.

Naturalistic Observation

An investigative approach where participants are studied in their natural settings without interference from the researcher.

Correlational Analysis

A method used to determine the degree to which two or more variables are related without determining cause and effect.

Demand Characteristics

Cues in an experiment that suggest to participants what the researcher expects to find or how participants are expected to behave.