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    Macroeconomics Study Set 2
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    Exam 10: Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security
  5. Question
    In the Two-Period Model with Asymmetric Information,a Bank
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In the Two-Period Model with Asymmetric Information,a Bank

Question 9

Question 9

Multiple Choice

In the two-period model with asymmetric information,a bank


A) creates money.
B) keeps money safely.
C) multiplies reserves.
D) borrows and lends.

Correct Answer:

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