Which of the Following Is an Assumption Made in the Money-Creation

question 48

Multiple Choice

Which of the following is an assumption made in the money-creation process?

• A) Banks only lend to borrowers who they know will pay them back.
• B) Banks lend out all deposits and hold no reserves.
• C) Banks hold all deposits as vault cash.
• D) All currency is deposited in a bank.
• E) Individuals do not deposit any currency in a bank.

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Definitions:

Significant Problem

An issue or challenge of considerable importance or impact that warrants attention and resolution.

Instructional Design Process

A systematic development of educational and training programs in an effective and reliable manner that addresses the needs of learners and helps them achieve specific learning objectives.

Organization Analysis

A process for determining the appropriateness of training by evaluating the characteristics of the organization.

Organization Analysis

The process of reviewing the development, work environment, personnel, and operation of a business or another type of association to identify areas of improvement.