Which of the Following Is Correct

question 96

Multiple Choice

Which of the following is correct?

• A) Both the granting and repaying of bank loans expand the aggregate money supply.
• B) Granting and repaying bank loans do not affect the money supply.
• C) Granting a bank loan destroys money; repaying a bank loan creates money.
• D) Granting a bank loan creates money; repaying a bank loan destroys money.

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Definitions:

Retribution

The infliction of punishment or penalty in response to wrongdoing, often seen as a form of justice.

Personal Mistakes

Errors or poor decisions made by an individual, often leading to learning opportunities.

Channel Richness

The degree to which a communication channel conveys information effectively, including verbal, non-verbal, and contextual cues.

Perceived Efficacy

The belief in one's own or a specific method's ability to achieve a goal or produce a desired outcome.