The ability of a commercial bank to increase the money supply is limited by the
A) availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements.
B) demand of the public for liquidity.
C) eligibility of the bank for currency drafts and its ratio of M2 to M1.
D) willingness of customers to withdraw currency for circulation.
A
Economics
You might also like to view...
Microeconomics deals with:
A) the working of the entire economy or large sectors of it. B) employment, growth, and inflation. C) individual units in the economy. D) normative economics for the most part.
Economics
A partnership is limited to how many owners?
A) 2 B) 5 C) less than 10 D) There is no limit to the number of owners.
Economics