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Coose the correct answer:

A) A commercial bank creates money in the process of:
B) Monetary policy is carried out by:
C)By raising the required reserve ratio, the Fed instigates changes in banks' behavior that will ultimately result in

User Ofir
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1 Answer

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How does a a commercial bank create money ?
By making loans to the public -this means that extra money will enter the market!

Monetary policy is the responsibility of the Federal reserve! -The central bank of the country.

And the answer to the lasst question is that it would lead to a decrease in the quantity of money-since more money would have to stay in the reserve!

User Gamecreature
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