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.

---

Definitions:

Primitive Type

In programming, a primitive type is a basic data type provided by a programming language as a basic building block.

Vector

An array-like data structure that can grow and shrink in size dynamically, from the Java Collection framework.

Iterator

An object that enables the traversal of a container, particularly lists and sets, and allows the programmer to access each element in the container without exposing its underlying structure.

Container

In programming, a structure that holds multiple elements, often of similar types, providing various methods for storage and retrieval.