Author Question: In a simplified system, a bank receiving a new deposit can extend new loans equal to the amount by ... (Read 41 times)

laurencescou · **on:** Jun 30, 2018

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