Coose the correct answer:

A) A commercial bank creates money in the process of:

B) Monetary policy is carried out by:

C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

Question

Business

Caylee Pace

2 July, 10:35

Coose the correct answer:

A) A commercial bank creates money in the process of:

B) Monetary policy is carried out by:

C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

+3

Answers (1)

Know the Answer?

Levi Ho · Answer 1

How does a a commercial bank create money?

By making loans to the public - this means that extra money will enter the market!

Monetary policy is the responsibility of the Federal reserve! - The central bank of the country.

And the answer to the lasst question is that it would lead to a decrease in the quantity of money-since more money would have to stay in the reserve!

Coose the correct answer:A) A commercial bank creates money in the process of:B) Monetary policy is carried out by:C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

Coose the correct answer:

A) A commercial bank creates money in the process of:

B) Monetary policy is carried out by:

C) By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in