If there is no one who is interested in borrowing from a bank:
A. the bank's excess reserves will be zero.
B. there will be no process of money creation.
C. the required reserve ratio must be equal to zero.
D. the required reserve ratio must be equal to 100 percent.
Answer: B
You might also like to view...
Which of the following is not a reason for changes in the politics of the budget process over the past forty years?
a. The changing composition of government spending toward social services. b. The increasing size of budget deficits. c. The increasing federal debt. d. The move away from incrementalism in the budgetary process.
In the monetarist view, the money supply affects the economy
a. through investment spending and government spending. b. indirectly through interest rates. c. directly, apart from interest rates. d. by altering the size of the money multiplier.