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    Business
  3. Study Set
    Principles of Money Banking
  4. Exam
    Exam 2: The Role of Money in the Macroeconomy
  5. Question
    A Bank Can Create New Money Only When
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A Bank Can Create New Money Only When

Question 61

Question 61

Multiple Choice

A bank can create new money only when


A) its reserves fall below the amount required by the Federal Reserve.
B) it has excess reserves.
C) its has vault cash.
D) it is loaned up.

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