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Author Question: A single bank is severely limited in its ability to create money because: a. the FDIC will not ... (Read 74 times)

NguyenJ

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on: Jun 30, 2018
A single bank is severely limited in its ability to create money because:
 a. the FDIC will not permit it to create money unless the Resolution Trust Corporation guarantees the loans.
  b. loan recipients usually take the proceeds of the loan in cash.
 c. the funds loaned probably will be deposited in another bank.
 d. recent federal legislation prohibits banks from creating money except to finance international trade.

Question 2

The money supply function reflects a positive relationship between the interest rate and the quantity of money supplied.
 a. True
  b. False
  Indicate whether the statement is true or false


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wfdfwc23

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

False


NguyenJ

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Reply 2 on: Jun 30, 2018
Excellent

mochi09

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Reply 3 on: Yesterday
Gracias!

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