Most money in the US is created when

a. commercial banks make more loans
b. commercial banks increase their liabilities
c. the US Mint prints more US currency
d. Investment banks increase their number of IPOs

Answer: a. commercial banks make more loans

Economics

You might also like to view...

Typically the largest component of the narrowly-defined money stock in the United States, known officially as M1, is

A) commercial bank reserves. B) currency in commercial bank vaults or the hands of the public. C) demand deposits and savings deposits in commercial banks. D) checking account deposits. E) gold, silver, coins, and paper currency.

Economics

Which of the following is not an example of price discrimination?

A) Unlike foreign tourists, citizens of Cambodia are exempted from paying an admission fee to the temples of Angkor. B) Senior citizens may purchase special fare tickets for public transportation that are not available to others. C) Adobe Systems offers software at discounted prices to students and faculty at K-12 and university levels. D) Buyers at an automotive parts store receive a discount for bulk buying because the store is able to pass on to its customers some of the lower average cost for producing large quantities.

Economics