Which of the Following Is an Assumption Made in the Money-Creation

question 48

Multiple Choice

Which of the following is an assumption made in the money-creation process?

• A) Banks only lend to borrowers who they know will pay them back.
• B) Banks lend out all deposits and hold no reserves.
• C) Banks hold all deposits as vault cash.
• D) All currency is deposited in a bank.
• E) Individuals do not deposit any currency in a bank.

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Definitions:

Creative

Pertaining to the ability to generate new ideas, solutions, or artistic expressions, often characterized by originality and innovation.

Intelligent Human Being

An individual characterized by the ability to learn, understand complex ideas, engage in various forms of reasoning, and adapt to new situations.

Frederick Taylor

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