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:

Moved Upward

Refers to the action or process of moving higher in position or status.

Selective Attention

The process of focusing on a particular object or task while ignoring irrelevant information or stimuli.

Stimulus Array

A set or collection of stimuli presented to an individual in order to elicit responses or behaviors for study.

Mental Set

A habitual strategy or pattern of approach for understanding and solving problems.