Which of the Following Allow Banks to Minimize the Cost

question 192

Multiple Choice

Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short.
II. Raising funds from a large number of depositors.
III. Creating money by lending all their reserves.

• A) II and III
• B) I only
• C) II only
• D) I and III

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