Which of the Following Does Not Constrain Deposit Creation

question 140

Multiple Choice

Which of the following does not constrain deposit creation?

• A) Consumers and businesses decide to take money out of transactions accounts and hold it as cash.
• B) Consumers,businesses,and governments decide to stop borrowing.
• C) Banks decide to stop lending money to qualified borrowers.
• D) The Federal Reserve decides to reduce the minimum reserve requirement.

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