25) Which of the following best describes how banks create money? A) Banks charge higher interest rates on loans than they pay on deposits. B) Banks charge fees for providing financial advice. C) Banks create checking account deposits when making loans from excess reserves. D) Banks make loans from reserves.
25) Which of the following best describes how banks create money? A) Banks charge higher interest rates on loans than they pay on deposits. B) Banks charge fees for providing financial advice. C) Banks create checking account deposits when making loans from excess reserves. D) Banks make loans from reserves.
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 10P
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