Which of the following determines the amount of money the banking system as a whole can create?
A) the limit on profits by banks imposed by the U.S. Congress
B) the quantity of vault cash held by banks
C) the gold reserves held by the Federal Reserve
D) the quantity of bank reserves
D
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Refer to Scenario 18.1. When Curly made the loans to Moe, Larry, and Shemp, there were 500 coins' worth of receipts, so in total, the receipts were ________ backed by gold
A) 20% B) 40% C) 50% D) 100%
An "omitted variable" is
A) a variable which is purposely omitted from an economic analysis. B) a variable which is inadvertently omitted from an economic analysis. C) a variable that has no impact on other variables in an economic analysis. D) a variable that affects other variables and its omission from economic analysis can lead to false conclusions about cause and effect.