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.

Comprehend timing gear marking practices for transmission maintenance.

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Definitions:

Strategic Intent

A focused approach defining what an organization intends to achieve in the long term, guiding decisions and resource allocation.

Operational Plan

A plan that identifies short-term activities to implement strategic plans.

Functional Plan

A detailed, department-specific plan that outlines the objectives, strategies, and actions for achieving functional goals.

Objective Advantage

A definite, measurable benefit that one option or situation has over others, based on factual evidence.