Banks Perform the Indispensable Task Of

question 66

Multiple Choice

Banks perform the indispensable task of:

• A)creating money without making loans.
• B)absorbing the excess liquidity created by other financial institutions.
• C)intermediating between surplus-spending parties and deficit-spending parties.
• D)issuing risky deposits.
• E)None of the options are correct

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Definitions:

Propinquity

The physical or psychological proximity between people, influencing their likelihood of forming relationships.

Deindividuation

A psychological state of decreased self-evaluation, causing people to ignore usual restraints in the group setting.

Anticonformity

Anticonformity describes behavior that goes against or opposes the norms or standards of a group intentionally, often to maintain a sense of individuality.

Independence

The state of being self-sufficient and not reliant on external support or being influenced by others in decisions or actions.