Through the taking of deposits and making loans, banks create more money that physically exists. destroy money that would physically exist if they were not part of the process. leave the system with exactly the same amount of money as physically exists. have no role in the money creation pro

Through the taking of deposits and making loans, banks create more money that physically exists. destroy money that would physically exist if they were not part of the process. leave the system with exactly the same amount of money as physically exists. have no role in the money creation pro

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Through the taking of deposits and making loans, banks
create more money that physically exists.
destroy money that would physically exist if they were not part of the process.
leave the system with exactly the same amount of money as physically exists.
have no role in the money creation progr

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