Banks Are Able to Create Money Only When

question 15

Multiple Choice

Banks are able to create money only when

• A)interest rates are above 2%.
• B)the Fed sells U.S.government bonds.
• C)the reserve ratio is 100%.
• D)only a fraction of deposits are held in reserve.

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Definitions:

Neurotransmitters

Chemical substances in the nervous system that transmit signals between neurons or from neurons to muscles, influencing many aspects of both physical and psychological function.

Unipolar Depression

A significant depressive disorder defined by continuous feelings of sadness or a disinterest in outside stimuli.

Dopamine

A neurotransmitter in the brain associated with pleasure, movement, and the brain's reward system.

Peripartum Depression

A type of mood disorder associated with childbirth, encompassing depression that occurs during pregnancy or within the weeks or months after delivery.