Banks Create New Deposits by

question 79

Multiple Choice

Banks create new deposits by

• A)lending out excess reserves
• B)lending out required reserves
• C)raising interest rates on loans
• D)calling in loans
• E)printing new checks

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Definitions:

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than another.

Travel Costs

are expenses incurred by individuals or businesses related to traveling, such as transportation, lodging, and meals.

Production Possibilities Curve

A graph that shows the various combinations of outputs that an economy can produce, given resources and technology.

Basic Decisions

Fundamental choices or determinations made by individuals or organizations that dictate behavior and actions, often shaping future outcomes.