Author Question: Can bankers create money? a. No, they do not have this power. b. No, unless they have a special ... (Read 58 times)

wrbasek0 · **on:** Jun 30, 2018

Can bankers create money?
a. No, they do not have this power.
b. No, unless they have a special charter which permits it.
c. Yes, through multiple deposit creation.
d. Yes, by printing checks for customers.

Question 2

Suppose you hold 5,000 in cash when the interest rate on bonds is 4 percent. Other things equal, as the bond interest rate declines to 3 percent, you will want to hold more money because the opportunity cost of holding money has decreased.
a. True
b. False
Indicate whether the statement is true or false