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Can you please help me? QUESTION 1 Banks create money in the economy by: O A. loaning out all of their deposits to borrowers. O

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QUESTION 1 Banks create money in the economy by: O A. loaning out all of their deposits to borrowers. O B. loaning out part of each deposit, which will be redeposited by someone else. O C. charging higher interest on loans than savings. O D. charging higher interest on savings than loans QUESTION 2 If the reserve ratio is 20 percent, then the money multiplier is approximately: O A. 20. O B. 10. O C. 5. OD. 2 QUESTION 3 Your checking account balance would be counted in which measure of money? O A. M1 O B. M2 O C. Hard money D. It would be counted in both M1 and M2 QUESTION 4 The entity that carries full responsibility for setting the overall direction of monetary policy and guiding the money supply is the: O A. Federal Open Market Committee. O B. Federal Reserve Chairman. O C. Board of Governors. ( D. regional bank presidents' cabinet. QUESTION 5 Giving the Fed a high degree of independence means all except: O A. the Fed governors will not be as tempted by political pressure O B. it is less likely to expand the money supply simply to make it cheaper for the government to repay its debt. C. technocrats-rather than politicians-are in charge, which tends to increase people's trust in the stability of the dollar. D. The federal government will not have to borrow to finance its budget deficit

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