Money Is Destroyed When

question 95

Multiple Choice

Money is destroyed when:

• A)loans are made.
• B)cheques written on one bank are deposited in another bank.
• C)loans are repaid.
• D)the net worth of the banking system declines.

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Definitions:

Semiannual Interest

Semiannual Interest refers to interest that is calculated and paid twice a year, commonly found in bonds and other types of loans.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Accrued Interest

The interest that has been incurred but not yet paid on a loan or bond.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.