Which of the Following Statements Best Explains How Financial Institutions

question 24

Multiple Choice

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

• A) By opening new chequing 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:

Large Projects

Extensive or significant undertakings that typically require considerable resources, time, and coordination to complete.

International Organization for Standardization

An independent, non-governmental international organization that develops and publishes a wide range of proprietary, industrial, and commercial standards.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Quality

The degree to which a project's deliverables meet the requirements and satisfy the needs for which they were intended, often assessed through quality control and assurance processes.