Banks Create Money in the Economy By

question 135

Multiple Choice

Banks create money in the economy by:

• A) loaning out part of each deposit, which will be redeposited by someone else.
• B) charging higher interest on loans than savings.
• C) charging higher interest on savings than loans.
• D) loaning out all of their deposits to borrowers.

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Definitions:

Person-Environment Fit

The compatibility between an individual and a work environment that occurs when their characteristics are well matched.

Idealized Self

An individual's conception of their optimal self and attributes, which can serve as a motivational template for personal development and goal setting.

Real Self-Image

An individual's view of themselves, based on their true characteristics, feelings, and behaviors, as opposed to how they may wish to appear.

Homeostasis

A steady state of bodily functioning and equilibrium.