When a bank receives new deposits, it can make new loans up to the amount of
A) the deposits received.
B) the excess reserves generated by the deposits
C) the reserves generated by the deposits.
D) the required reserves generated by the deposits.
Ans: B) the excess reserves generated by the deposits
Economics
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A government policy to improve farm incomes by supporting agricultural prices at a level above equilibrium will reduce consumer's surplus
Indicate whether the statement is true or false
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