The Deposit-Creation Process Can Continue as Long as

question 193

Multiple Choice

The deposit-creation process can continue as long as

• A) banks have required reserves
• B) banks have excess reserves
• C) the Fed sells bonds
• D) banks sell bonds to the public
• E) the required reserve ratio does not change

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Definitions:

Wealth

The abundance of valuable resources or material possessions, or the control over such assets.

Subjective Measure

An assessment based on personal opinions, feelings, or attitudes, rather than objective, measurable criteria.

Flying Buttresses

Flying buttresses are architectural elements used in Gothic cathedrals that transfer the weight of the roof and upper walls outward to external supports, allowing for higher and thinner walls and large stained-glass windows.

Nave Vaults

Arching forms in the central part of a church that are used to span the space over the nave, creating a ceiling or roof.