Banks create money, when banks:
A) extend loans to their customers and add that loan-money to the demand deposits of the customer's account.
B) buy government securities from the Bank of Canada and increase its liquidity.
C) accept cash deposits and keep it bank's vaults.
D) increase their deposits at the Bank of Canada.
Correct Answer:
Verified
Q34: A recent development in the financial services
Q35: Banks create money by:
A) granting new loans.
B)
Q36: Fractional reserve banking mans:
A) banks hold cash
Q37: In a fractional-reserve banking system, the reserves/deposits
Q38: If the reserve/deposit ratio (rr) is 0.2
Q40: The currency ratio (cr) is:
A) the ratio
Q41: The reserve ratio (rr) in the banking
Q42: Which of the following statements is true?
A)
Q43: Consider a situation where the reserve ratio
Q44: Consider a situation where the reserve ratio
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