What Essential Factor Enables Chartered Banks to Create Money

question 141

Multiple Choice

What essential factor enables chartered banks to create money?  

• A) desired reserves 
• B) excess reserves 
• C) provincial and local government securities 
• D) net worth

---

Definitions:

Mediterranean Sea

A sea connected to the Atlantic Ocean surrounded by the Mediterranean region and almost completely enclosed by land.

Chaparral

A biome with a Mediterranean climate (mild, moist winters and hot, dry summers). Chaparral vegetation is characterized by drought-resistant, small-leaved evergreen shrubs and small trees.

Boreal Forest

A biome characterized by coniferous forests located in northern regions, experiencing cold climates and playing a vital role in the Earth's carbon cycle.

Taiga

The biome characterized by coniferous forests, covering vast areas of northern America and Eurasia, known for cold climates and long winters.