Which of the Following Best Describes the Chain of Events

question 34

Multiple Choice

Which of the following best describes the chain of events in the money creation process?

• A) The monetary base increases. Banks acquire excess reserves which they loan out, increasing deposits and also the quantity of money. The new deposits then create additional excess reserves.
• B) Currency is drained from the quantity of money into the banking system, where it is lent out. The loans are spent, increasing the currency drain and also the quantity of money.
• C) Desired reserves increase, encouraging banks to seek new deposits. When the new depositors come in, desired reserves decrease and the quantity of money increases.
• D) Low interest rates discourage people from holding currency. When they deposit the currency, interest rates rise, increasing the quantity of money.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Percentage-of-Completion

An accounting method recognizing revenues and expenses of long-term contracts as a percentage of work completed.

Transfer Pricing

The price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one another.

Transfer Pricing

The setting of prices for transactions between entities under the same corporate umbrella, often used for strategic financial management and tax planning.

Clearing House Interbank

A financial institution providing settlement and clearing services for financial transactions between banks.