When a bank has excess reserves
A) it can create money.
B) it can make loans.
C) it has too many loans.
D) Both answers A and B are correct.
Question 2
In a perfectly competitive industry, the demand for a single firm's product is
A) perfectly inelastic.
B) perfectly elastic.
C) as elastic as the market demand.
D) inelastic, but not perfectly inelastic.