If a Bank Borrows $1,000 from the Fed and Lends

question 117

True/False

If a bank borrows $1,000 from the Fed and lends it out,the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000.

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Definitions:

French And Indians

Often relates to the French and Indian War (1754-1763) in North America where France allied with various Native American tribes against Britain.

Champlain

Samuel de Champlain, a French explorer known for founding New France and Quebec City in the early 17th century.

Quebec City

The capital city of the Canadian province of Quebec, known for its rich history and French heritage.

Huron Indians

A large North American Indigenous group, historically located in the Great Lakes region, known for their farming, trading, and strong societal organization.