What Essential Factor Enables Commercial Banks to Create Money

question 230

Multiple Choice

What essential factor enables commercial banks to create money?

• A)required reserves
• B)excess reserves
• C)state and local government securities
• D)U.S.government securities
• E)net worth

---

Definitions:

Government Publications

Documents and reports published by the government, ranging from legislation, policy papers, to statistical data.

Census Data

consists of statistical information collected through a comprehensive enumeration of a population, including details about demographics, employment, and housing, among other factors.

Big Data

The process and technology related to handling vast datasets that traditional data processing software cannot manage, used for insights that lead to better decision making.

Traditional Sources

Traditional sources refer to established methods or origins from which something comes, such as information, financing, or energy.