Chartered Banks Create Money in the Form of Chequable Deposits

question 179

True/False

Chartered banks create money in the form of chequable deposits when they make loans.

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Definitions:

Single Employee

Refers to an individual worker within an organization, focusing on aspects related to their employment status or conditions.

Compensating Balance

A minimum cash balance required by some banks to be maintained in a bank account.

Maximum Cash Balance

The highest amount of cash that a company aims to hold at any given time.

Internal Control

Protocols and processes designed by a business to secure the authenticity of its financial and accounting information, enhance accountability, and impede fraudulent operations.