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14 of 25 During recessions, most banks will experience the following: O Their net worth will increase because customers pay off their loans. O Their
14 of 25 During recessions, most banks will experience the following: O Their net worth will increase because customers pay off their loans. O Their net worth will decrease because customers will not repay a higher share of loans. O Their net worth will increase because customers will pay a higher share of loans. O A and C 15 0f25 Banks are able to create money in the economy if Q banks loan out their excess reserves. O banks do not loan out part of their excess reserves. O banks hold all of their deposits as required reserves. O banks purchase U.S. government securities with all of their excess reserves. 16 of 25 A good form of money is described as having the following characteristics: O unit of account, medium of exchange, store of value, and standard of deferred payment. 0 unit of account, medium of exchange, and store of value. 0 unit of account, medium of exchange, and standard of deferred payment. 0 unit of account, medium of exchange, store of value, and money. 17 of 25 Contractionary monetary policy is described as O the interest rate at which one bank lends funds to another bank overnight. 0 monetary policy that increases the supply of money and the quantity of loans. 0 monetary policy that decreases the supply of money and the quantity of loans. O the interest rate at which the central banks loans money to commercial banks
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