Question
According to the credit theory of banking: 1.banks create deposits when they make loans 2.banks receive deposits and multiply those deposits through the loan creation
According to the credit theory of banking:
1.banks create deposits when they make loans
2.banks receive deposits and multiply those deposits through the loan creation process
3.Central bank reserves' most important funtion is to meet reserve requirements
4.Banks can become insolvent by not making loans
5.Banks create loans and fund those loans through loans from the central bank
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The correct answer according to the credit theory of banking is 1 Banks create deposits when they ma...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
