alleryMatch money creation: 1. Cash in: p. Primary 2. Lending: q. Derived 3. Ratio: r. Multiply
A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
Primary deposits represent actual currency inflows, derivative deposits emerge as banks extend loans, and the credit multiplier dictates overall expansion.
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