Which of the following will limit the expansion of the money supply following a new deposit? A strong demand for new loans A re-depositing of all loan proceeds People hanging onto currency in private safes outside of commercial banks Failure of banks to voluntarily hold excess reserves
Which of the following will limit the expansion of the money supply following a new deposit? A strong demand for new loans A re-depositing of all loan proceeds People hanging onto currency in private safes outside of commercial banks Failure of banks to voluntarily hold excess reserves
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...
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