Ask Question
BusinessBusiness
19 August, 07:47

What does it mean to say that "banks create money"?

+3
Answers (1)
  1. 19 August, 08:15
    0
    The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What does it mean to say that "banks create money"? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statements is not correct? A. Real GDP growth has remained positive since 2010. B. Quantitative easing is a relatively new monetary policy tool. C.
Answers (1)
A loan is negotiated with a lender agreeing to accept $8, 000 after one year, $9, 000 after two years, and $20, 000 after four years in full repayment of the loan.
Answers (1)
Which of the following statements about recessions is false? a) A fall in real GDP for two consecutive quarters marks a recession. b) A long and severe recession might be referred to as a depression.
Answers (1)
Don James purchased a new automobile for $28,000. Don made a cash down payment of $7,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase.
Answers (1)
Research has indicated that customer satisfaction and employee productivity are higher when the racio-ethnic composition of the customers matched that of store employees.
Answers (1)
New Questions in Business
6 If you are a driver under 21 with a breath or blood alcohol level of. 05 or higher you will be required to:
Answers (1)
Why do you think companies felt that unions were "conspiracies that interfere with property rights"?
Answers (1)
When Ernesto needed to learn what his employees really think about his company's new pension plan, he approached Vonnie, a long-time secretary in the legal department with contacts throughout the organization.
Answers (1)
2. How interest rate changes affect present and future value Suppose you deposit $300 today into a bank account with a variable interest rate and will receive a payment in one year.
Answers (1)
The definition of manager has three components. Which one below is not one of them? a. A manager is always responsible for contribution b. Managers always get something done through other people c.
Answers (1)
Home » Business » What does it mean to say that "banks create money"?
Sign Up Forgot Password?