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23 December, 14:56

Banks are able to create money only when

a. interest rates are above 2%.

b. the fed sells u. s. government bonds.

c. the reserve ratio is 100%.

d. only a fraction of deposits are held in reserve.

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Answers (1)
  1. 23 December, 16:30
    0
    D - Only a fraction of deposits are held in reserve. This is the right and correct answer.
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