1. The U.S. central bank is a financial institution that:has the sole right to a

1. The U.S. central bank is a financial institution that:has the sole right to a

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1. The U.S. central bank is a financial institution that:has the sole right to accept deposits and make loans.has the sole right to issue currency commonly referred to as notes.sets borrowing and lending in a country.determines what assets will back a currency.2. Small-denomination time deposits are included in:M1.M2.travelers checks.checking accounts.3. The amount of money ultimately created per dollar deposited when people hold cash is the:money multiplier.excess reserve ratio.required reserve ratio.simple money multiplier.4. The interest rate is the price paid for the use of a:real liability.real asset.financial liability.financial asset.

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