The commercial banking system can lend by a multiple of its excess reserves primarily because:
A. Its reserves are on deposit with the Federal Reserve Banks
B. Its reserves are highly liquid assets
C. It loses reserves when it extends credit
D. Its required reserves are fractional
D. Its required reserves are fractional
Economics
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If Walmart issues $250 million in new stock to finance the renovation of their retail stores, this is an example of
A) a stock market transaction. B) indirect finance. C) a bond market transaction. D) direct finance.
Economics
If the demand curve is vertical a rightward shift of the supply curve will lead to
A) an increase in quantity supplied. B) an increase in quantity demanded. C) a decrease in quantity demanded. D) a decrease in price.
Economics