In order for the banking system to expand the money supply with a money multiplier effect, all of the money loaned out
a. has to have been demand deposits at some bank
b. has to stay in one bank
c. by one bank has to be deposited in the same bank
d. has to be repaid before the multiplier process can work
e. has to equal the amount of legal reserves for the banking system
A
Economics
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Although the Federal Reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well
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