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:

Recurring Characters

Characters that appear regularly in a series of stories, television shows, or other narrative works.

Television

An electronic system of transmitting transient images of fixed or moving objects together with sound over a wire or through space by apparatus that converts light and sound into electrical waves and reconverts them into visible light rays and audible sound.

Men

Adult human males.

Changing

The process of becoming different in some particular way, without permanently losing one's or its essential characteristics or essence.