The Key to Understanding the Money Creation Process Is the Fact

Multiple Choice

The key to understanding the money creation process is the fact that:

A) whenever banks create financial assets for themselves, they create financial liabilities for individuals, and those financial liabilities are considered money.
B) whenever banks create financial liabilities for themselves, they create financial assets for individuals, and those financial assets are considered money.
C) banks are able to print dollar bills and add these to circulation whenever they extend loans.
D) since the money supply excludes cash but includes checking account deposits, money is created whenever individuals deposit cash into a checking account.