Multiple Choice
Which of the following is an assumption made in the money-creation process?
A) Banks only lend to borrowers who they know will pay them back.
B) Banks hold no excess reserves.
C) Banks lend out all deposits and hold no reserves.
D) Banks hold all deposits as vault cash.
E) Individuals do not deposit any currency in a bank.
Correct Answer:
Verified
Correct Answer:
Verified
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