# finance/math

A group of economics students gathered to study for a test on the money and banking system in the U.S. During a fast and furious brainstorm session, Jill scribbled down several key phrases she will use to study tomorrow. Unfortunately, in her haste, all the statements in her notes are incorrect:
- Two forms of money include cash and credit cards because both are accepted as payment.
- All savings accounts are considered transaction accounts because they represent money.
- Consumers who make loan payments create transaction accounts.
- If I open a savings account at a bank with cash received as a birthday gift, I'll increase the money supply in the economy.
- By creating transaction accounts, even a single bank has unlimited power to affect the money supply.
- If a bank has \$10 million in reserves and an additional \$3 million in excess reserves, it can make loans up to \$13 million.

1. 👍 0
2. 👎 0
3. 👁 116
1. the amount of loan a bank can make is limited tothe amount equal to its excess reserve.

1. 👍 0
2. 👎 0
posted by Donna

## Similar Questions

1. ### bus 599

A group of economics students gathered to study for a test on the money and banking system in the U.S. During a fast and furious brainstorm session, Jill scribbled down several key phrases she will use to study tomorrow.

asked by Anonymous on March 5, 2012
2. ### to mrs. sue: essay cont.

I wrote two of my paragraphs yesterday about how colleges do offer life skills but students have to apply it. These are my next two paragraphs and i was wondering if you can correct my grammar. An example of a class offered in

asked by julie on November 28, 2007
3. ### Math

In a group of 40 students, 22 study Economics, 25 study Law, and 3 study neither of these subjects. Determine the probability that a randomly chosen student studies: 1. Both Economics and Law 2. At Least one of these subjects 3.

asked by John on October 31, 2017
4. ### Math

In a group of 40 students, 22 study Economics, 25 study Law, and 3 study neither of these subjects. Determine the probability that a randomly chosen student studies: 1. Both Economics and Law 2. At Least one of these subjects 3.

asked by John on October 31, 2017
5. ### Math

In a group of 40 students, 22 study Economics, 25 study Law, and 3 study neither of these subjects. Determine the probability that a randomly chosen student studies: 1. Both Economics and Law 2. At Least one of these subjects 3.

asked by John on October 31, 2017
6. ### Math

In a group of 40 students, all students study maths, 28 study biology and math, 20 students study geography and maths and x students study all three subjects. a. Draw a venn diagram to represent the information above, showing in

asked by Shian on September 25, 2011
7. ### Statistics

A student group claims that first-year students at a university must study 2.5 hours (150 minutes) per night during the school week. A skeptic suspects that they study less than that on the average. A class survey finds that the

asked by Kate on March 9, 2010
8. ### Math

A group of students is entering a contest to win \$1000. The students plan to divide the money equally. Construct a graph that best describes the relationship between the number of students in the group and the amount of prize

asked by Gus on March 4, 2012
9. ### STATISTICS

A statistics professor conducted a study on the effect of playing video games on a studentâ€™s test scores. On the first day of class, she randomly divided her classes into groups. Group one played video games 2 hours a day, group

asked by DEBBIE on February 5, 2011
10. ### Math Help

Poll of statistic students revealed that 44% study alone, 31% study in a group, 12% study both alone and in a group Find the probability that a randomly selected statistic student studies alone but not in a group.

asked by Taylor on October 17, 2007

More Similar Questions