Chartered Banks Create Money in the Form of Chequable Deposits

question 179

True/False

Chartered banks create money in the form of chequable deposits when they make loans.

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Definitions:

Behavioral Economists

Academics analyzing the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices made by individuals and institutions.

Framing Effects

A cognitive bias where people react differently based on the way information is presented or framed, affecting decision-making and judgments.

Solar Panels

Devices that convert sunlight into electricity, using photovoltaic cells to capture and transform solar energy.

Neoclassical Economics

An economic methodology that explores how market distributions of commodities, outputs, and incomes are regulated by supply and demand dynamics.