Professional Courses
Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.
Categories
Interactive Games
Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.
Typing
Memory
Math
English Adventures
Knowledge
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is credit creation?
💡 Hint: Think about how banks use deposits.
Question 2
Easy
What percentage of deposits do banks need to hold as reserves?
💡 Hint: It varies based on central bank regulations.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What happens to the money that banks do not keep in reserve?
- It is invested
- It is lent out
- It is stored in cash
💡 Hint: Consider the primary function of banks with deposits.
Question 2
True or False: The reserve requirement limits the total amount of loans a bank can issue.
- True
- False
💡 Hint: Reflect on how much banks must keep versus what they can lend.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A bank with an initial deposit of $10,000 has a reserve requirement of 15%. If the bank loans out $8,500, calculate the total money supply after three rounds of lending assuming all loans are redeposited.
💡 Hint: Visualize the lending process and calculate each round clearly.
Question 2
Discuss how changing the reserve requirement impacts inflation rates and economic stability.
💡 Hint: Think about how banks respond to reserve changes and their wider economic implications.
Challenge and get performance evaluation