The Money-Creation Formula Is Oversimplified Because It Assumes That

question 208

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 these responses are correct.

---

Definitions:

Powerlessness

A state of feeling unable to control one's own life or influence outcomes, often associated with situations of oppression or illness.

Personal Autonomy

The capacity to make an informed, uncoerced decision about one's own actions and life direction.

Instilling Hope

The process of encouraging optimism and a positive outlook in individuals, especially in therapeutic settings.

Fetishism

A form of sexual desire in which gratification is linked to an abnormal degree to a particular object, item of clothing, or part of the body.