menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Economics Theory and Practice
  4. Exam
    Exam 8: Money Creation, Monetary Theory, and Monetary Policy
  5. Question
    When a Bank Makes a Loan, the Funds for That
Solved

When a Bank Makes a Loan, the Funds for That

Question 33

Question 33

Multiple Choice

When a bank makes a loan, the funds for that loan are drawn down from:


A) nowhere.
B) the bank's vault cash.
C) balances in the bank depositors' accounts.
D) the Federal Reserve Bank's borrowing fund.

Correct Answer:

verifed

Verified

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

Related Questions

Q28: It takes longer to implement monetary policy

Q29: An increase in excess reserves when the

Q30: The ZKL Bank has $200 million in

Q31: Increasing the amount of loans available should:<br>A)

Q32: Crowding out occurs when borrowing by:<br>A) households

Q34: The specific percentage of deposits that a

Q35: The interest rate charged by a depository

Q36: Which of the following arguments is NOT

Q37: The money multiplier is the multiple by

Q38: The difference between a commercial bank's borrowing

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