A Bank Cannot Create Money Unless Its ________

question 128

Multiple Choice

A bank cannot create money unless its ________.

• A) required reserves are greater than actual reserves
• B) excess reserves are zero
• C) desired reserves are greater than actual reserves
• D) excess reserves equal deposits multiplied by the reserve ratio

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Definitions:

Negligently

Acting with a lack of care or attention expected under the circumstances, often resulting in harm or damage.

Franchise Contracts

Legal agreements granting the right to operate a business under the franchisor's brand and systems in exchange for fees or royalties.

Limited Partnership

A form of partnership consisting of at least one general partner, who manages the business and is liable for debts, and one or more limited partners, who invest but do not manage and have limited liability.

General Partner(s)

Individuals in a partnership who have unlimited liability and are involved in the day-to-day management of the business.