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    Essential Foundations of Economics Study Set 1
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    Exam 18: Money and the Monetary System
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    Banks Create Money by
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Banks Create Money by

Question 120

Question 120

Multiple Choice

Banks create money by


A) printing paper money.
B) minting coins.
C) making loans.
D) buying government securities.
E) None of the above because banks cannot create money;only the Federal Reserve can create money.

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