Commercial Banks Are Able to Create Money by

question 569

Multiple Choice

Commercial banks are able to create money by

• A) printing Federal Reserve Notes.
• B) making loans.
• C) making customers pay back their loans.
• D) exchanging their reserves at the Fed for currency.

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Definitions:

Just-in-Time Production

A manufacturing strategy that reduces waste by receiving goods only as they are needed in the production process.

Masculine Cultures

Cultures that value assertiveness, competitiveness, and material success.

Tight-loose Distinction

The concept indicating the level of strictness or flexibility in the social norms and rules of a society or organization.

Values

A broad tendency to prefer certain states of affairs over others.