Question: Banks can create money Selected answer will be automatically saved. For keyboard navigation, press up / down arrow keys to select an answer. a because

Banks can create money
Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.
a
because demand deposits (checking accounts) are part of the money supply.
b
by making loans that create checking accounts.
c
because of the fractional reserve system.
d
by all of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!