In a simplified system, a bank receiving a new deposit can extend ...

[laurencescou]

In a simplified system, a bank receiving a new deposit can extend new loans equal to the amount by which its excess reserves increase.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Reserves of banks appear on their balance sheet as liabilities.
 a. True
  b. False
  Indicate whether the statement is true or false

[yahahah24021]

Answer to Question 1

True

Answer to Question 2

False

[laurencescou]

Thanks for the timely response, appreciate it

[nyrave]

Excellent