When you open a checking account at Bank of America, Bank of America
A) has more deposits, but excess reserves remain unchanged.
B) has more reserves, but excess reserves remain unchanged.
C) has more reserves and more excess reserves.
D) has more deposits and less in excess reserves.
Question 2
Should European nations which are not currently using the euro choose to adopt the euro as their currency, these countries would risk giving up the ability to use ________ to stabilize their economies in the event of a recession.
A) contractionary fiscal policy B) expansionary monetary policy
C) expansionary fiscal policy D) contractionary monetary policy
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Examples of open and closed ended questons
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