1. The more reserves the commercial banking system has the more likely it is to lend.

Answer: False

Explanation: Please read An unholy gathering is emerging for further information or post a question on the comments page for clarification.

2. The money multiplier concept is predicated on the notion that banks only lend when they have reserves and they get them by attracting deposits.

Answer: True

Explanation: Please read An unholy gathering is emerging for further information or post a question on the comments page for clarification.

3. The saying "Investment brings forth its own saving" refers to the fact that the non-government sector is not sovereign in the currency and has to finance its spending.

Answer: False

Explanation: Please read We are in trouble squirrels are falling down holes for further information or post a question on the comments page for clarification.

4. The private domestic sector overall can never save if there is a current account deficit and the government continually balances its budget.

Answer: True

Explanation: Please read I guess they didnt want to win the war for further information or post a question on the comments page for clarification.

5. After a downturn where governments have run large budget deficits, the only way to reduce the stockpile of public debt is for the government to run surpluses in the future.

Answer: False

Explanation: Please read The comeback of conservative ideology for further information or post a question on the comments page for clarification.