Question

In: Economics

44. "Private" bank money includes a. Federal Reserve Notes. b. reserves held at the Fed. c....

44. "Private" bank money includes

a. Federal Reserve Notes.

b. reserves held at the Fed.

c. demand deposits at commercial/retail banks.

d. FDIC insurance limits.

Solutions

Expert Solution

44. C

c. demand deposits at commercial/retail banks.

It is the money create by lending and borrowing by private Bank. Other item is out of stock of private bank. Reserve held at federal Bank restrict the private money FDIC insurance limit is not a private bank money as is does not have any financial value. Federal reserve note is the money of Central Government.

Rahul Sunny answered 2 years ago
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