Which of the Following Is an Assumption Made in the Money-Creation

question 48

Multiple Choice

Which of the following is an assumption made in the money-creation process?

• A) Banks only lend to borrowers who they know will pay them back.
• B) Banks lend out all deposits and hold no reserves.
• C) Banks hold all deposits as vault cash.
• D) All currency is deposited in a bank.
• E) Individuals do not deposit any currency in a bank.

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Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, typically measured in the arteries and considered important for ensuring effective circulation of blood.

Arteries

Blood vessels that carry oxygenated blood away from the heart to the tissues of the body.

Vasodilate

The expansion of blood vessels that lowers blood pressure and enhances the flow of blood.

Sarcoplasmic Reticulum

A specialized type of smooth endoplasmic reticulum found in muscle cells, which stores and releases calcium ions to trigger muscle contraction.