Banks Create Money Whenever They

question 243

Multiple Choice

Banks create money whenever they

• A) accept a deposit.
• B) lend excess reserves to a borrower.
• C) receive monthly payments on their loans.
• D) receive interest on existing loans.

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Definitions:

Duty to Serve

An obligation requiring entities (often utilities or public services) to provide service to all customers or members of the public within their operational area.

Duty to Have

An obligation or requirement to possess something, often related to legal, regulatory, or professional standards.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit-and-loss distribution among partners in a business partnership.

Division of Profits

The allocation of a company's net profits among its shareholders or partners.