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.

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Definitions:

Price Increase

A situation where the cost of goods or services rises over a period of time.

Supply Elasticity

Measures how the quantity supplied of a good responds to a change in the price of that good.

Market Supply Curve

A graphical representation of the quantity of goods and services that suppliers are willing and able to sell at various prices during a given period.