Banks Create Money by

question 120

Multiple Choice

Banks create money by

• A)printing paper money.
• B)minting coins.
• C)making loans.
• D)buying government securities.
• E)None of the above because banks cannot create money;only the Federal Reserve can create money.

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both the private cost and any external costs.

Pollution Emissions

Refers to contaminants or pollutants released into the environment, usually from human activity, that can harm human health and the ecosystem.

Efficient Level

The optimal point of production or consumption, where resources are utilized in the most effective manner, minimizing waste and maximizing benefit.

Pollution

The contamination of the natural environment by substances or energies that cause adverse effects on living organisms and ecosystems.