Which of the following essential factors enables commercial banks to create money?
a. Required reserves
b. Excess reserves
c. State and local government securities
d. U.S. government securities
e. Net worth
Question 2
The amount of U.S. exports to the rest of the world is primarily determined by _____.
a. the real disposable income in the United States
b. the real disposable income in other nations
c. the real interest rate in other nations
d. the real interest rate in the United States
e. the government budget deficits in other nations
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