A bank manager tells you that she doesnt create money. She just lends the money that people

Question:

A bank manager tells you that she doesn’t create money. She just lends the money that people deposit. Explain why she’s wrong.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

See More Books

Question Posted: Dec 19, 2015 04:54 AM

See More Questions

You are the human resources manager for a manufacturing firm that is presently the subject of an organizing campaign by a union that has filed an election petition with the NLRB just 30 days ago....
A manager tells you that her company's cost accounting system divides overhead into two pools: (1) inspect material and (2) assemble product. The inspect material pool is allocated on the basis of...
You are involved in the audit of accounts receivable, which represent a significant portion of the assets of a large retail corporation. Your audit plan requires the use of the computer but you...
An investment project has annual cash inflows of $3,200, $4,100, $5,300, and $4,500, and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost...
Use the information from the Northern Cruiseline Data Set. Draw a graph of Northern Cruiselines CVP relationships. Include the sales revenue line, the fixed expense line, and the total expense line....
Refer to the data and other information provided in E202. In E On September 1, 2011, Wong Corporation, which uses private enterprise GAAP, signed a five-year, non-cancellable lease for a machine. The...
A school guidance counselor examines the number of extracurricular activities that students do and their grade point average. The guidance counselor says, The evidence indicates that the correlation...
Code Churn is a common metric used to measure the efficiency and productivity of software engineers and computer programmers. It?s usually measured as the percentage of a programmer?s code that must...
Comprehensive Problem Part 1 Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2018, are as follows:...
At the end of each month, Fido receives a bank statement from its bank. This bank statement shows the information that the bank has processed from the beginning of the month to the end of the month....
How do banks create money?
What are the main influences on the quantity of real money that people and businesses plan to hold?
Explain why materials with high m values, such as hot glass and silly putty, when stretched slowly, undergo large elongations before failure. Consider events taking place in the necked region of the...
Name and define the more common constraints in any given project.
Graph the function f(x)=-x+4x-20 State where f(x) is increasing and decreasing. State any absolute extrema (if they exist). Determine the Domain and Range.
A residential wiring circuit is shown in the figure. In thismodel, the resistor R 3 is used to model a 250 V appliance(such as an electric range), and the resistors R 1 and R 2 are used to model 125...
1. The speed limit on some interstate highways is roughly 100 km/h. (a) What is this in meters per second? (b) How many miles per hour is this? 2. A car is traveling at a speed of 33 m/s. (a) What is...
Questions 33 and 34 are based on the following information: Bilog Company's budgeted fixed overhead costs are P50,000 and mthe variable factory overhead rate is P4 per direct labor hour. The standard...
Discuss NFC, an emerging payment mode.
One Way Cellular accountants have assembled the following data for the year ended September 30, 2014: Prepare the operating activities section using the indirect method for One Way Cellulars...
What does a short seller try to do? (a) Buy low now and sell high later. (b) Sell high now and buy low later. (c) Buy on margin and repay with borrowed funds. (d) Sell on margin and repay with...
In 1802, a new market developed in the United States garden seeds sold in small packets. The new market was developed by the Shakers, a religious group whose members took a vow of celibacy and lived...
1. Consider an accounting firm with two accountants. a. Fill in the blanks in the following table. b. Quigley has a comparative advantage in_____________, while Slokum has a comparative advantage...
1. Arrows up or down: Outsourcing _____ production costs and _____ consumer prices. 2. In the first three months of 2004, the number of jobs moving to another state was _____ (larger/smaller) than...
What is the duration for the following bond with annual payments? 5.6300 5.7957 4.9894 5.1910 5.3806
DOLLAR TREE GROCERY OUTLET Short-Term Liquidity 2021 2022 2021 2022 Current Ratio 1.35 1.51 1.86 1.67 Quick Ratio 0.24 0.15 0.63 0.42 Cash Ratio Cash Conversion Cycle 34.78 45.75 19.41 21.61 Days...
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...

A bank manager tells you that she doesnt create money. She just lends the money that people

Question:

Step by Step Answer:

Though the manager does not see the entire process nonetheless the loans the manager makes crea...View the full answer

Macroeconomics Canada in the Global Environment

Students also viewed these Economics questions