When the First Bank of Townsville makes a loan, it A) prints ...

[Jkov05]

When the First Bank of Townsville makes a loan, it
 
  A) prints money.
  B) borrows the money from the Fed.
  C) creates a checkable deposit.
  D) decreases the quantity of money.
  E) increases its reserves.

Question 2

We see evidence of shortages when we see scarce goods beginning to be acquired by
 
  A) price decreases.
  B) rising nonmoney costs.
  C) the money price.
  D) unfair means.

[akemokai]

Answer to Question 1

C

Answer to Question 2

B

[Jkov05]

Excellent

[sultansheikh]

TYSM