Which of the following does not occur when a bank makes a loan?
A) It creates money.
B) It creates a transactions-account balance for the borrower.
C) The money supply increases.
D) It transfers money from spenders to savers.
Correct Answer:
Verified
Q46: The assets held by a bank to
Q47: If you deposit $1,000 in your checking
Q48: When a bank makes a loan:
A) It
Q49: The term fractional reserves refers to:
A) The
Q50: Ceteris paribus,the money supply becomes smaller when:
A)
Q52: Ceteris paribus,if Tamika pays off a loan
Q53: Banks are most profitable when:
A) Loans are
Q54: The reserve ratio is the ratio of:
A)
Q55: If there is no minimum reserve requirement
Q56: The reserve ratio is the:
A) Percentage of
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