If Commercial Banks Hold All Their Assets in the Form

question 37

Multiple Choice

If commercial banks hold all their assets in the form of required reserves:

• A)only they will be able to create money.
• B)only the central bank will be able to create money.
• C)no one will be able to create money.
• D)both commercial banks and the central bank will be able to create money.

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Definitions:

Restaurant

A business establishment where meals are prepared and served to customers in exchange for money.

Proprietorship

A business owned and operated by a single individual, characterized by the simplicity of setting up and the sole responsibility for any of its debts or liabilities.

Financial Difficulty

A situation where an individual, business, or government faces challenges in meeting its debt obligations or managing its monetary affairs.

Bankruptcy

A legal process where individuals or organizations declare their inability to pay off their debts.