When a bank takes money that you put in your checking account and gives it to someone else, at a cost, for a period of time, it is said to be
A) making a loan.
B) making a deposit.
C) internalizing an externality.
D) creating commodity money.

Question

Quizplus · Accepted Answer

When a bank takes money from your checking account and lends it to someone else at a cost (interest), it is engaging in the process of making a loan. This is a fundamental banking activity where deposits are used to provide loans to borrowers.

When a Bank Takes Money That You Put in Your