1. Which of the following is true?
2. a.If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000.
3. b.A majority of U.S. money, whether M1 or M2, is in the form of legal tender.
4. c.Reserve requirements exist primarily to eliminate bank runs.
5. d.When there are two forms of money available, people prefer to spend the form of money that is more valuable.