What is the deposit expansion process through which banks create money?

Answer:

The deposit expansion process refers to successive rounds of ______________ where each bank increases the money supply up to the amount of its excess reserves.

What is the reserve ratio and who sets the reserve ratio?

Answer:

The reserve ratio is a ______________ that determines the bank's required reserves that are required to be held by the bank against its deposits. This percentage is set by the Federal Reserve.

What is commodity money?

Answer:

Commodity money is money whose value is derived from a commodity. Historically commodity money has been the first money used because of the need for a ______________ of exchange.