Can bankers create money? a. No, they do not have this power. b. ...

[wrbasek0]

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

[ju]

Answer to Question 1

c

Answer to Question 2

True

[wrbasek0]

Excellent

[frankwu0507]

Gracias!