The Money Creation Process Begins When

question 42

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)bank deposits increase.
• E)banks lend reserves.

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Definitions:

Cash Available

The amount of cash that a company or an individual has on hand or can easily access.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Stock Premium

The amount by which the selling price of a share exceeds its par value, also known as share premium.

Other Income

Revenues earned from activities that are not related to a company's primary business operations.