Banks Create Money When They

question 37

Multiple Choice

Banks create money when they:

• A)add to their reserves in the Bank of Canada.
• B)accept deposits of cash.
• C)sell government bonds.
• D)exchange demand deposits for the IOUs of businesses and individuals.

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Definitions:

Indirectly Related

Pertaining to elements or factors that have an influence on a situation or outcome but are not a direct cause or effect.

Overhead Rate

The overhead rate is a calculation used to determine how much of indirect costs (overhead) a business should allocate to each unit of production or service.

Multiple Production

This term could refer to the operation of producing goods in multiple quantities or varieties, but it's not a standard accounting or business term. Likely, it means batch or mass production processes.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.