In a fractional reserve banking system:
A. bank panics cannot occur.
B. the monetary system must be backed by gold.
C. banks can create money through the lending process.
D. the Federal Reserve has no control over the amount of money in circulation.
C. banks can create money through the lending process
Economics
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Refer to Figure 5-3. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 400. B) 800. C) 1,200. D) > 1,200.
Economics
As of December 2010, the largest single component of M1 consists of
a. checkable deposits at banks. b. money market mutual funds. c. savings deposits. d. currency.
Economics