Money Is "Created" When

question 166

Multiple Choice

Money is "created" when

• A) a depositor gets cash from the bank's ATM.
• B) a bank accepts deposits from its customers.
• C) people receive loans from their banks.
• D) people spend the incomes that they receive.

---

Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, without changing the shareholders' equity.

Stock Dividend

A distribution of extra shares to shareholders instead of a financial dividend.

Cash Dividend

A portion of a company's earnings distributed to shareholders in cash.

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits, indicating the company owes money.