The Banking System Creates Money in the Sense That It

question 5

Multiple Choice

The banking system creates money in the sense that it:

• A)prints money.
• B)creates excess reserves from loans.
• C)creates loans from excess reserves.
• D)creates required reserves from loans.
• E)creates loans from required reserves.

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Definitions:

Institutions

Organizations or complex social systems that establish patterns of behavior and rules within a society, such as educational, religious, or financial organizations.

Latency Stage

In psychoanalytic theory, a period between childhood and puberty when sexual feelings are dormant and children engage in activities that develop their skills and interests.

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the premises presented, moving from general to specific.

Personal Constructs

Individual beliefs or concepts through which people perceive, interpret, and make sense of the world around them.