The Money Creation Formula Is Oversimplified Because It Assumes That

question 115

Multiple Choice

The money creation formula is oversimplified because it assumes that

• A)every recipient of a bank loan will redeposit the proceeds in another bank.
• B)loan recipients will not take any of the proceeds in cash.
• C)every bank lends out all excess reserves.
• D)All of the above are correct.

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Definitions:

Unify Italy

Refers to the process during the 19th century where various states and territories on the Italian peninsula were consolidated to form the modern nation of Italy.

Independent States

Political entities that have sovereign control over their territory, free from external control, recognized by international law as having a permanent population, defined territory, government, and capacity to enter into relations with other states.

Venetian Republic

The Venetian Republic was a sovereign state and maritime republic in northeastern Italy, which existed for over a millennium between the 8th century and 1797.

Revolutionaries

Individuals who advocate for or engage in political revolution, aiming to radically transform the political, economic, or social structure of society.