The Banking System Creates Money in the Sense That It

question 5

Multiple Choice

The banking system creates money in the sense that it:

• A)prints money.
• B)creates excess reserves from loans.
• C)creates loans from excess reserves.
• D)creates required reserves from loans.
• E)creates loans from required reserves.

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Definitions:

Service Productivity

The measure of output generated by a service sector entity relative to the input of resources like labor and capital.

Mass Customization

Mass customization is a manufacturing and marketing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.