Banks Cannot Influence the Money Supply If They Are Required

question 52

True/False

Banks cannot influence the money supply if they are required to hold all deposits in reserve.

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Definitions:

Erosion

Erosion is the natural process by which soil, rock, and other surface material are worn away and transported by natural forces, such as water or wind.

Condense

To reduce something, such as a text or statement, to make it shorter, while retaining the essential information or to change the physical state of a substance from gas to liquid.

Precipitation

The process by which water in the form of rain, snow, sleet, or hail falls from the atmosphere to the Earth's surface.

Root Systems

The underground part of a plant that absorbs water and nutrients from the soil, anchors the plant, and stores food.