I guess that correct.....................well lets continue with the quiz....
state true/ false:
1) Banks create monetary base money when they issue loans
2) A bank's reserves consist of its vault cash and its deposits at the Fed.
3) As aggregate bank lending increases, the Fed must increase banking system reserves in order to maintain control of the Fed funds rate.
4) Banks lend the money they receive from their depositors
5) A bank's own money is at risk when it issues a loan.
6) When a bank issues a loan, its liabilities and reserves increase by the amount of the loan.
7) As the economy grows, Treasury revenues from taxes and bond sales must exceed spending in order to build up the balance in its accounts.
cOrrect answers to dese would fetch you 7 pts. So think and answer.
state true/ false:
1) Banks create monetary base money when they issue loans- FALSE
2) A bank's reserves consist of its vault cash and its deposits at the Fed.- TRUE
3) As aggregate bank lending increases, the Fed must increase banking system reserves in order to maintain control of the Fed funds rate. - TRUE
4) Banks lend the money they receive from their depositors-FALSE
5) A bank's own money is at risk when it issues a loan.- TRUE
6) When a bank issues a loan, its liabilities and reserves increase by the amount of the loan.- FALSE
7) As the economy grows, Treasury revenues from taxes and bond sales must exceed spending in order to build up the balance in its accounts. - FALSE
I GUESS IM RIGHT....... HEY PLS TELL IF IM RIGHT OR WRONG........
KEEP PLAYING......
CHEERS!!! :tea: