Individual Chartered Banks Are Limited in Their Ability to Create

question 18

Multiple Choice

Individual chartered banks are limited in their ability to create money by lending because:

• A)lending is likely to result in the loss of reserves to other banks.
• B)only the Department of Finance is authorized to create new money.
• C)the Bank of Canada prohibits bank lending when the result is an expansion of the money supply.
• D)banking is a highly competitive industry.

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Definitions:

Dopamine

Dopamine is a neurotransmitter in the brain that plays a key role in regulating mood, motivation, and reward.

Voluntary Movement

Movement that is consciously controlled by the brain, typically in response to a decision or desire to move a part of the body.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences.

Memory

The cognitive process of encoding, storing, and retrieving information.