The Process of Money Creation by the Banking System Is

question 136

Multiple Choice

The process of money creation by the banking system is limited,in part,by the

• A)number of banks.
• B)desired reserve ratio.
• C)number of depositors.
• D)Comptroller of the Currency.
• E)laws passed each year by the U.S.Congress.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a strong response.

Raise Profits

The process of increasing a company's profits through different methods such as reducing costs, increasing sales, or improving productivity.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase, plotted with price on the vertical axis and quantity on the horizontal axis.

Marginal Costs

The growth in total expenditure associated with the creation of one more unit of a good or service.