Problem
1. Consider this statement: "Banks do not create money because this is the Fed's responsibility." Do you agree or disagree? Explain.
2. In what form does a bank hold its required reserves? Assume the Fed has a 20 percent required reserve ratio. What amount of checkable deposits can be supported by $10 million in required reserves?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.