menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Macroeconomics Study Set 43
  4. Exam
    Exam 14: B: Money, Banking, and Money Creation
  5. Question
    Banks Create Money When They
Solved

Banks Create Money When They

Question 37

Question 37

Multiple Choice

Banks create money when they:


A) add to their reserves in the Bank of Canada.
B) accept deposits of cash.
C) sell government bonds.
D) exchange demand deposits for the IOUs of businesses and individuals.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q32: Henry Trudeau deposits $2,000 in currency in

Q33: Demand deposits are also called:<br>A)chequing accounts.<br>B)high-powered money.<br>C)savings

Q34: If you are estimating your total expenses

Q35: A cheque for $10,000 drawn on Bank

Q36: Refer to the information below.The M1 definition

Q38: What is one significant characteristic of fractional

Q39: The following balance sheet is for the

Q40: If we let P equal the price

Q41: Assume that Johnson deposits $350 of his

Q42: Mortgage-backed securities are bonds backed by mortgage

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines