A Single Bank Is Limited in Its Ability to Create

question 110

Multiple Choice

A single bank is limited in its ability to create money because

• A)loan recipients usually take the proceeds of the loan in cash.
• B)the FDIC will not permit it to create money unless the loans are guaranteed by the federal government.
• C)the money loaned will probably be deposited in another bank.
• D)federal legislation prohibits banks from creating money except to finance international trade.

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Definitions:

Sensory Root

The part of a spinal nerve that carries sensory information from the peripheral body parts back to the spinal cord.

Dorsal Root

The part of a spinal nerve that carries sensory neural information to the spinal cord from the peripheral organs.

Motor Root

The part of a spinal nerve that carries motor signals from the spinal cord to the muscles.

Golgi Tendon Reflex

A protective mechanism that prevents muscle damage during excessive force generation by causing muscle relaxation.