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Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are

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Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are

Question 1.

As commercial banks keep more excess reserves, money creation

▸ increases.

▸ decreases.

▸ remains the same.

▸ could either increase or decrease.

Question 2.

Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are

▸ $1.2 million.

▸ $6.8 million.

▸ $8 million.

▸ $9.2 million.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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