Banks create money by keeping a small percentage of deposits in reserves and __________ the remaining funds, charging interest.

a. lending
b. spending
c. saving
d. investing

a. lending

Economics

You might also like to view...

Suppose the population of the U.S. is 300 million people. Of these, the U.S. Bureau of Labor Statistics classifies 70 million people as "not surveyed," 80 million people as not in the labor force, and 144 million as employed. What would be the unemployment rate in this example?

Select one: a. 2% b. 4% c. 6% d. 8%

Economics

Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?

a. Make sure that your competitor clearly understands your actions and intentions b. Make sure that your competitor keeps guessing about your actions and intentions c. Make sure you keep your actions and intentions ambiguous d. All of the above

Economics