Money Expansion Stops When New Reserves Introduced into the Banking

question 67

Multiple Choice

Money expansion stops when new reserves introduced into the banking system have been converted into:

• A)excess reserves.
• B)securities.
• C)deposits.
• D)required reserves.
• E)loans.

---

Definitions:

License

A permit or authorization granted by an authority to engage in a particular activity or to use a particular property.

Revocation

The act of officially cancelling or withdrawing something, such as a law, license, privilege, or promise.

License

A permit or authorization granted by a competent authority or the owner to use a particular property, asset, or intellectual property under certain conditions.

Produce

The act of creating, manufacturing, or growing goods, often in relation to agriculture or manufacturing sectors.