Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. dont plagerize and explain in your own words 1. h

dont plagerize and explain in your own words 1. How (the primary way) money is created in...

70.2K

Verified Solution

Question

Economics

dont plagerizeand explain in your own words

1. How (the primary way) money is created in the economy.In your explanation you must correctly apply the following terms:actual reserves,required reserves,and excessreserves.

2. Why is the banking system in the United States referredto as a fractional reserve bank system?

3. What is the role of deposit insurance in a fractionalreserve system?

Answer & Explanation Solved by verified expert
4.0 Ratings (779 Votes)
Question 1 In any modern economy commercial banks create money by giving them away as loans The banks need to hold only a proportion of their deposits as required reserves with the Federal Reserve of the country The rest of the money is referred to as excess reserves which the bank uses to generate money in the economy This is done by creating loans and checkable    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Carbohydrate Monosaccharide Disaccharide Polysaccharide Lactose Fiber Glucose Select whether each carbohydrate is a monosaccharide, disaccharide, or polysaccharide. A chocolate bar is an example of...

Medical Sciences
Q

Describe at least one analytical technique that you could use that is more sensitive than Raman...

Chemistry
Q

A beam is subjected to equal bending moments M = 6.5 kip-ft, as shown. The cross-section...

Mechanical Engineering
Q

The fixed form of nitrogen ammonium ion and ammonia can be oxidized for energy by...

Biology
Q

A playground merry go round of radius 1 5 m has a mass 20 kg...

Physics
Q

1 Please draw a sketch of each of the following figures Please label all sketches...

Geometry
Q

Each year, Giselle plants and grows tomatoes in her backyard garden. Her plants typically produce...

Basic Math
Q

Question 3 20 points 3 Find the derivatives of the given functions a 2x 1...

Calculus
Q

An employee earns gross pay of $720 during the current pay period. Taxes associated with...

Accounting
Q

image

Accounting
Q

The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August,...

Accounting
Q

What are the two ways in which a public corporation creates value for shareholders?

Finance