Which of These Is NOT a Leakage in Money Creation

question 42

Multiple Choice

Which of these is NOT a leakage in money creation?

• A) keeping cash under the mattress
• B) foreigners holding U.S. dollars to diversify risk
• C) banks holding more reserves than required
• D) depositing a large jar of coins at the bank

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from its total revenue.

Cost of Goods Sold

Direct spending associated with producing the merchandise a company trades, including both materials and manpower costs.

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.