Which of the Following Statements BEST Explains How Financial Institutions

question 98

Multiple Choice

Which of the following statements BEST explains how financial institutions create money?

• A) By opening new checking accounts and giving more people access to readily available cash, financial institutions expand the money supply.
• B) By issuing money through government contracts, financial institutions expand the money supply.
• C) By taking deposits and loaning out these funds, financial institutions expand the money supply.
• D) By paying interest on its accounts and investments, financial institutions expand the money supply.
• E) By giving interest from its accounts to its clients, financial institutions expand the money supply.

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Definitions:

Unconditional Positive Regard

A practice in client-centered therapy where the therapist accepts and supports the client, whatever they say or do, without judgement.

Mitwelt

In existential psychology, it refers to the dimension of an individual's world that involves relationships and encounters with others.

Existential Optimism

A mindset that focuses on the possibility and potential for personal growth and meaningful experiences despite the inherent uncertainties of existence.

Nietzsche

Friedrich Nietzsche was a German philosopher and cultural critic who explored the repercussions of the "death of God" for traditional values and the potential for individual self-realization.