Which of the following statements BEST explains how financial institutions create money?
A) By opening new checking accounts and giving more people access to readily available cash, financial institutions expand the money supply.
B) By issuing money through government contracts, financial institutions expand the money supply.
C) By taking deposits and loaning out these funds, financial institutions expand the money supply.
D) By collecting interest on its accounts through investments, financial institutions expand the money supply.
E) By giving interest from its accounts to its clients, financial institutions expand the money supply.
Correct Answer:
Verified
Q5: Which of the following BEST describes the
Q19: Which of the following is a consequence
Q49: Money frees society from a system of
Q50: Which of the following is NOT part
Q51: Which of the following is NOT a
Q52: Which of the following BEST describes the
Q55: When buying from a supplier in France,LTD,based
Q56: Which of the following BEST describes two
Q57: Which of the following affects the value
Q58: Which of the following financial institutions are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents