An important effect of fractional reserve banking is that:
a. bankers' choices about how much to lend can affect the money supply
b. the commercial banking system has complete control over total reserves.
c. bankers always turn every dollar of excess reserves into loans.
d. a new bank deposit allows a bank to extend loans of the same amount to borrowers.
a
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Cash held by the public, excess reserves kept by banks, and a high required reserve ratio will increase the amount of new money created by an initial increase in excess reserves
Indicate whether the statement is true or false
Which of the following is a likely consequence of a price ceiling that fixes the price of rental housing below the market equilibrium?
a. It will be difficult to find housing for rent. b. More new apartments will be built. c. Some rental apartments will be converted into offices or sold for other uses rather than be rented. d. All of the above are true. e. Both a and c are correct.