How Does the Banking System Create Money

question 68

Multiple Choice

How does the banking system create money?  

• A) It prints notes. 
• B) It creates excess reserves from loans. 
• C) It creates loans from excess reserves. 
• D) It creates desired reserves from loans.

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Definitions:

Diploid Chromosome Number

The total number of chromosomes in a diploid cell, which includes two sets of chromosomes, one from each parent.

Gamete

A mature haploid male or female germ cell which is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Sister Chromatids

Identical copies of a chromosome that are connected by a centromere and separated during cell division.

Nuclear Envelope

The double membrane structure that encloses the nucleus of a cell, separating its contents from the cytoplasm.