Through the Taking of Deposits and Making Loans Banks

question 94

Multiple Choice

Through the taking of deposits and making loans banks

• A)create more money that physically exists.
• B)destroy money that would physically exist if they were not part of the process.
• C)leave the system with exactly the same amount of money as physically exists.
• D)have no role in the money creation process.

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Definitions:

Dissonance Theory

A concept that describes the discomfort felt when a person holds two or more conflicting beliefs, values, or attitudes, prompting a motivation to reduce the dissonance.

Self-Concept

The collection of beliefs and perceptions individuals have about themselves, encompassing aspects like self-image and self-esteem.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes, subjective norms, and perceived behavioral control.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.