If the Reserve Requirement Is Increased to 25 Per Cent

question 46

Multiple Choice

If the reserve requirement is increased to 25 per cent, then the First Bank of Oz:

• A)can create money by making a new loan
• B)can hold excess reserves
• C)cannot make a new loan
• D)both B and C

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The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

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