Do bankers create money? Question options: If the Fed sells $5 million in govern

ID: 1095960 • Letter: D

Question

Do bankers create money?

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If the Fed sells $5 million in government bonds, how much will the money supply change?

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Bankers' business decisions effect the money supply because bankers

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One intention of deposit insurance is to reduce the danger of

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Open market operations have their initial effect on bank

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Banks are required to keep a minimum level of reserves on hand. The intent of this regulation is

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Banks will hold additional excess reserves when

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If the Federal Open Market Committee decides to expand the money supply, then it will

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Bank regulation exists because public authorities are convinced that

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The speed with which money circulates through the economy is called the

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The equation of exchange can be written as

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Question 4

4) Yes, through multiple deposit creation

5) It will decrease by more than $5 million.

6) Have the ability to create money.

9) Bank runs

13) Reserves

18) Monetary control rather than bank safety.

19) Loans to customers look risky and interest rates are low

20) Issue directions to purchase government securities, thus putting more reserves in member banks

21) The balance between bank profitability and safety cannot be left to profit-maximizing managers

26) Velocity of circulation

28) Money supply

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