As commercial banks keep more excess reserves, what happens to money creation?
(A) It remains the same.
(B) It could either increase or decrease.
(C) It increases.
(D) It decreases.
Ans: (D) It decreases.
Economics
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Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
A) prevent rival airlines from competing in that market. B) increase marginal revenue more than marginal cost. C) maximize marginal revenue. D) discourage rivals from matching price cuts.
Economics
Liabilities of the commercial banking system include
A. reserves and loans. B. reserves and deposits. C. loans and deposits. D. deposits.
Economics