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Pick ONE answer A bank creates money when it: 1) has a loan paid off, which creates excess reserves for the bank. 2) makes a
Pick ONE answer
A bank creates money when it:
1)
has a loan paid off, which creates excess reserves for the bank.
2)
makes a loan from its excess reserves.
3)
holds back excess reserves because of an increase in the required reserve ratio.
4)
gets new checkable deposits which the depositor formerly held as cash.
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