The money multiplier yielded by the deposit creation formula assumes that
a. banks hold no excess reserves.
b. banks hold excess reserves.
c. recipients of loans take some of the proceeds in cash.
d. recipients of loans do not redeposit their funds in other banks.
a
Economics
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A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in its price. The price elasticity of demand for pizza is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
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Modern U.S. commercial banks perform all of the following functions EXCEPT
A) accept checking deposits. B) issue paper currency. C) make loans to households and business firms. D) accept savings deposits.
Economics