According to the credit theory of banking: 1.banks create deposits when they make loans 2.banks receive deposits
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Question:
According to the credit theory of banking:
1.banks create deposits when they make loans
2.banks receive deposits and multiply those deposits through the loan creation process
3.Central bank reserves' most important funtion is to meet reserve requirements
4.Banks can become insolvent by not making loans
5.Banks create loans and fund those loans through loans from the central bank
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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