Money is created by

A) government taxation.
B) banks taking in deposits.
C) banks making loans.
D) banks paying for depositor's insurance.

C

Economics

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When Starbucks accepts your $10 bill for two Grande Lattes and one Tall Caramel Macchiato, the $10 bill serves as a

A) medium of exchange. B) store of value. C) standard of value. D) commodity money.

Economics

If a $100 billion decrease in investment spending causes income to decline by $100 billion the first round of the multiplier process and by $75 billion in the second round, income will eventually decline by:

A. $200 billion. B. $300 billion. C. $400 billion. D. $500 billion.

Economics