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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    Commercial Banks Are Able to Create Money by
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Commercial Banks Are Able to Create Money by

Question 211

Question 211

Multiple Choice

Commercial banks are able to create money by


A) exchanging their reserves at the Fed for vault cash.
B) making loans.
C) making customers pay back their loans.
D) printing Federal Reserve Notes.

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