With Regard to Creating Money

question 22

Multiple Choice

With regard to creating money,

• A)only central banks such as the Federal Reserve can create money.
• B)money is created when a bank customer invests in a time deposit.
• C)commercial banks can create money when a bank lends out funds borrowed from another customer who invested in a time deposit.
• D)none of the options

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Definitions:

Interest Income

Income earned from deposit accounts or investments that pay interest, such as bonds or savings accounts.

Capital Gains

The profit earned from the sale of an asset or investment when the selling price exceeds the original purchase price.

Marginal Tax Rates

The rate at which your last dollar of income is taxed, indicative of the tax bracket in which your income falls.

Provincial Tax Brackets

The tax rates assigned to various income levels within a specific province, determining the amount of tax payable by residents.