Which of the Following Statements BEST Explains How Financial Institutions

question 94

Multiple Choice

Which of the following statements BEST explains how financial institutions create money?

• A) By opening new checking accounts and giving more people access to readily available cash, financial institutions expand the money supply.
• B) By issuing money through government contracts, financial institutions expand the money supply.
• C) By taking deposits and loaning out these funds, financial institutions expand the money supply.
• D) By collecting interest on its accounts through investments, financial institutions expand the money supply.
• E) By giving interest from its accounts to its clients, financial institutions expand the money supply.

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Definitions:

Structure Declaration

A statement in programming that defines a new data type consisting of a collection of variables under a single name.

Second Variable

A variable declared or used after the first in a program or function, often for storing or manipulating additional data.

Data Field

A specific piece of data, typically a part of a larger data structure like a record or object, representing a characteristic or attribute.

Single Unit

Refers to an individual element or component in a larger system or structure, often representing the smallest usable part.