Author Question: There is a potential for banks to create money when they A) lend out their excess reserves. B) ... (Read 62 times)

Anajune7 · **on:** Jun 29, 2018

There is a potential for banks to create money when they

A) lend out their excess reserves.
B) fail to lend out their excess reserves.
C) hold more of their customer deposits as vault cash.
D) hold all of their customer deposits as vault cash.

Question 2

Why would a speculator purchase 1,000 shares of XYZ.COM stock at a price ten times greater than its initial public offering price?

A) They expect the price to soon fall.
B) They expect to be able to sell it at a higher price.
C) They must think the company will sustain long-run profits.
D) They failed to realize the importance of economizing in their portfolio allocation.