The money creation formula is oversimplified because it assumes that

a. every recipient of a bank loan will redeposit the proceeds in another bank.
b. loan recipients will not take any of the proceeds in cash.
c. every bank lends out all excess reserves.
d. All of the above are correct.

d

Economics

You might also like to view...

When demand rises and supply remains the same, equilibrium price _______ and equilibrium quantity ____________.

Fill in the blank(s) with the appropriate word(s).

Economics

The U.S. population is over _________ million.

Fill in the blank(s) with the appropriate word(s).

Economics