Banks create money by
A) printing paper money.
B) minting coins.
C) making loans.
D) buying government securities.
E) None of the above because banks cannot create money;only the Federal Reserve can create money.
Correct Answer:
Verified
Q187: The monetary base is the
A)minimum reserve banks
Q188: New money is created in the U.S.economy
Q189: Assume the First Bank of Townsville makes
Q190: If the Federal Reserve lowers the required
Q191: Banks create money by
A)printing currency.
B)asking the Fed
Q193: When the First Bank of Townsville makes
Q194: A bank has $200 of reserves and
Q195: If Federal Reserve notes and coins are
Q196: A bank reports reserves of $500,000,physical capital
Q197: When a bank receives deposits,
A)it must hold
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