Explain briefly QUESTION 4Which of the fallowing statements are correct? Pick two correct answers.Deposits are created.O When commercial banks make new loans to households and firmsWhen John takes pile of cash from under his matress and pays it into his current account at thebankBy the Bank of EnglandBy the Financial Conduct Authority (FCA)

When commercial bank makes loans, it creates additional account of the borrower and deposit loan…

Which of the fallowing statements are correct? Pick two correct answers. Deposits are create. O When commercial banks make new loans to households and firms O When John takes pile of cash from under his matress and pays it into his current account at the bank

Which of the fallowing statements are correct? Pick two correct answers. Deposits are create. O When commercial banks make new loans to households and firms O When John takes pile of cash from under his matress and pays it into his current account at the bank

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 17CQ

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