Which of the following best describes how banks create money? Select one: O a. Banks create checking account deposits when making loans from excess reserves. O b. Banks charge higher interest rates on loans than they pay on deposits. O c. Banks make loans from reserves. d. Ranks charge fees for providing financial advice.
Which of the following best describes how banks create money? Select one: O a. Banks create checking account deposits when making loans from excess reserves. O b. Banks charge higher interest rates on loans than they pay on deposits. O c. Banks make loans from reserves. d. Ranks charge fees for providing financial advice.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: The Monetary System
Section: Chapter Questions
Problem 5PA
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