Question: 4 . Referencing the textbook explanation, describe ( the primary way ) money is created in the economy. In your explanation, you must correctly apply

4 .

Referencing the textbook explanation, describe

(

the primary way

)

money is created in the economy. In your explanation, you must correctly apply the following terms: actual reserves, required reserves, and excess reserves.

5 .

Why is the banking system in the United States referred to as a fractional reserve bank system?

6 .

What is the role of deposit insurance in a fractional reserve system?

7 .

Write a short paragraph comparing the textbook description of the money system to Perry Marling's lecture videos.

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