Commercial Banks create money by

A. printing money as the needs of economy change.
B. borrowing money from other banks
C. making loans while only keeping a fraction of deposits in cash on hand at any given time.
D. accepting loan payments that are made on time. ​

Answers

Answer 1

The correct answer is C) making loans while only keeping a fraction of deposits in cash on hand at any given time.

Commercial Banks create money by making loans while only keeping a fraction of deposits in cash on hand at any given time.

In the United States, the Federal Reserve is the central bank and has an important role in regulating the function of commercial banks in America.

The Federal Reserve’s role is to promote economic growth and stability by enacting monetary policy.

The Federal Reserve Act of 1913 established the Federal Reserve system to avoid consumer panic, as had happened in the past.

The Federal Reserve plays a key role in helping control inflation because it keeps the money supply stable in order to maintain low inflation.

The Fed is the central bank in the United States. Its role in the US economy is very important to maintain a healthy financial and monetary system. The monetary policy of the Fed allows the control and the supply of money to maintain the stability of the economy. This control is very important in order to maintain proper levels of inflation so prices do not increase.

Answer 2

Commercial banks create money by: making loans while only keeping a fraction of deposits in cash on hand at any given time. Therefore, the correct option is C.

When a commercial bank gets deposits from its customers, it is mandatory for it to keep a certain fraction of those deposits as reserves in cash or in deposits form with the central bank of the country to fulfill withdrawal demands. The remaining part of the deposits is given as loans to borrowers.

When a bank gives a loan, it helps in generating money in the form of a new deposit in the borrower's account. This freshly created deposit can then also be used by the borrower to make another payments or withdrawals.

Thus, the ideal selection is option C.

Learn more about commercial bank here:

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Related Questions

UIT ONS
E
This statement is a lie: "I claimed Canada for France."
Rewrite the statement to say something that is true.

Answers

yeah i just told her i i just

Exercise
Exercise
Provide the information each Age of Reason thinker contributed to his time.
1. John Locke
2. Jean-Jacques Rousseau
3. Isaac Newton
4. Baron de Montesquieu
5. Cotton Mather
11

Answers

Answer:

sorry I don't know the answer

Answer:

John Locke: People have the right to challenge their government if it doesn’t protect the “natural rights” of life, liberty, and property

Jean-Jacques Rousseau: Society should be ruled by the “general will” of the people.

Isaac Newton: Discovered laws of gravity and motion that showed the natural world wasn’t controlled by spirits

Baron de Montesquieu: Power should not be concentrated in the hands of one individual

Cotton Mather: Advocated the use of science to immunize citizens against smallpox

Explanation:

Can somebody help me

Answers

Answer:

Scarcity leads to the idea of choice because it is important that people choose what they can satisfy or not. Scarcity makes it required that people make less of the other topic we left in an unsatisfied manner.

Explanation:

hope this helped! :)))

need help with some history

Answers

Answer:

The Roman Empire

Explanation:

Technically he wanted to re-establish Italy as a European power. but the Roman Empire is the closest thing

Bằng kiến thức về các nền văn minh: Ai Cập (châu Phi) và Ấn Độ (châu Á), Anh (Chị) hãy trình bày, phân tích những điểm tương đồng và dị biệt trong quá trình hình thành, phát triển của hai nền văn minh?

Answers

Answer:

c. Tính giai cấp

Explanation:

................

Which three factors were part of European imperialism

Answers

Answer:

The three main factors that were part of the European Imperialism are as followed:

Economic - The exploitation of foreign countries for natural resources.Political - The promotion of the idea of white superiority or supremacy. Social - The wide spread of the English language across regions such as South Asia.

The European imperialists pushed into regions such as South Asia anmd Africa solely motivated by three main factors which were economic, political, and social.

4. Describing How was treatment of Native Americans different in
Pennsylvania?

Answers

Most native americans were forced to leave pennsylvania during the 1700s when eastern tribes were being displaced by colonial expansion. These tribes are not extinct, but except for the descendants of Pennsylvania Indians who assimilated into white society, they do not live in Pennsylvania anymore.

PLEASE MARK BRAINLIEST IF IT HELPED THABKS <3

What was the name of the largest city in the Mississippian Empire?
Cuzco Cahokia natchez

Answers

Answer:

Explanation:

Cahokia was the largest and most influential urban settlement of the Mississippian culture.

How many stars are found in the background of the state seal? What do they represent? (Site 1)
Oklahoma



HELP ASAP

Answers

Answer : In the background of the seal, surrounding the main star, are forty-five smaller stars, representing the forty-five states in the Union when Oklahoma became the forty-sixth state.

Why are primary sources important when studying historical events

Answers

Answer:

because it trusted info in detail

Which of the following is an editing technique?
A. Graphic relations
B. Rhythmic relations
C. Spatial relations
D. All of the above

Answers

Answer:

D. All of the above

Explanation:

Graphic relations, rhythmic relations, spatial relations are all editing techniques.

D. All of the above

The image shows a student's notes.
o Impact of the Factory System
• Led to industrialization
• Introduced division of labor
What could the student correctly add to the set of notes?
A
Made production more efficient
B
Led to better pay for workers
С
Improved transcontinental trade
D
Caused rural populations to grow

Answers

The answer is A. It made production more efficient. Let me know if this is right

HELP I NEED THE ANSWER FAST ILL MAKE U BRAINIEST!!!!!!!!!
NASA was created as a direct response to the competition of the Cold War, trying to establish American technological supremacy. Without this
pressure, interest in NASA and space programs has dropped. Currently, NASA receives about $18 billion a year, about 0.5% of the total federal budget.
Do you think NASA is still worth funding, or is money better used elsewhere? Explain your reasoning.
Must be 3-5 sentences

Answers

NASA is still worthy of funding due to the increasing world population while resources are gradually dwindling. More investment in NASA is needed to advance missions to find new habitable planets. As soon as possible to increase the country's influence globally and bring out the best for the people.

What is one point of view in Mein Kampf?

Answers

Answer:

Adolf Hitler

Explanation:

Adolf wrote the book Mein Kampf while in jail. The book is translated to "my struggle". Due to this book being an autobiography about his political plans and beliefs, he is a point of view.

There are others too, such as an ally. Since the allies were fighting against the axis powers during WW2 it makes since that once would have a negative view on the book.

I hope this helps :)

who led the Black men in the army that were kept in segregated units

Answers

Answer:

On July 26, 1948, President Harry S. Truman issued Executive Order 9981 establishing equality of treatment and opportunity in the U.S. military regardless of race. He appointed the President's Committee on Equality of Treatment and Opportunity in the Armed Services, two of whose five members were African American.

White officers aka white folks

phong trào cần Vương diễn ra năm nào​

Answers

Answer:

I just wannna know this language

Which was not a reason the colonist wanted to declare independence

Answers

Answer:

any answer choices btw i need a picture

Answer:

One might be that they had a fear that they would lose the protection of their mother country and get attacked due to a weak military.

Explanation:

There are many reasons why the British colonists didn't want to declare independence. One might be that they had a fear that they would lose the protection of their mother country and get attacked.


6. Earth's surface did not play a significant role. tell me ture or false pls fast​

Answers

Answer:

false

Explanation:

Earth surface always was an important thing

How are women affected by the new republic?

Answers

Answer:

they did not gain political power

Explanation:

I hope this help

Question 3 of 10
What helped President Johnson get civil rights legislation passed?
O A. He said Americans had talked enough about equality and needed
to act.
B. He said it would honor President Kennedy's memory.
C. He was from the South.
D. All of the above
SURII

Answers

Answer:

D

Explanation:

After JFK's assassination, LBJ was pushed to pass the civil rights act to honor JFK. He is from Texas, so that could help him gain some support from southerners. He stated, "We have talked long enough in this country about equal rights. We have talked for one hundred years or more. It is time now to write the next chapter, and to write it in the books of law.” during his session with Congress.

The Johnson from the south to get the help to pass civil rights legislation, and said that Americans had spoke about equality and act it honors Kennedy's memory.

What is civil rights legislation?

Discrimination on the basis of race, religion, color, gender, or national origin is prohibited under the Civil Rights Act or legislation of 1964.

Discrimination on the basis of gender, as well as race, was prohibited in hiring, promoting, and dismissing under the provisions of this civil rights act.

The president Johnson from the south to get the help to pass civil rights legislation, by said that the Americans had talked enough about equality and needed to act.

He also said that it would honor President Kennedy's memory that belongs from the south.

Therefore, option d is correct.

To learn more about the legislation, refer to:

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Which sentence best completes the diagram? Congress's powers under the Articles of Confederation 2 To wage war against foreign countries To print and borrow money A. To create a national court system B. To collect taxes from the states O C. To regulate trade between the states O D. To pass laws that apply to all states​

Answers

Answer:

d

Explanation:

The seeds of the Harlem Renaissance were sown by the Great Migration in which large numbers of African Americans left the South and migrated north. What is a reason African Americans continued to move northward in the 1920s?

Answers

Answer:

Racism in the South and supposed economic and social freedoms up north

Explanation:

Financial compensation for a loss in a war, paid by the losing side, are called:
A. Recessions
B. Costs of defeat
C. Reparations
D. Deficits

Answers

The answer is reparations

Explain the meaning of the title of the novel A Man of The People.

Answers

Answer:

The title of the book is drawn from what Chief Nanga (one of the character in the novel) was characterized by his people in the city and in his home village; he was known as A Man of The People.

How are fundamental rights helping homemakers life?

Answers

Answer:

Fundamental rights of the European Union and international human rights.

Every person has fundamental rights.

They are rights that are stated in the Constitution of Finland.

They are basic values that are important for everyone.

The fundamental rights protect each person's freedom.

The government, municipalities or authorities may not take away a person's freedom.

An example of fundamental rights is that everyone has the right to life.

Everyone has the right to personal freedom and integrity.

Everyone has the freedom to move and to protect his or her private life.

Everyone has the freedom of speech and the freedom of taking part in meetings and being a member of an association.

Everyone's property is protected.

This means that you cannot take or destroy things that belong to an

other person.

The fundamental rights include economic rights, social rights and cultural rights.

Examples of these are the right to work and social security and the right to education.

The Constitution also protects equality.

The Constitution contains the right to take part in elections.

The Constitution gives every Finnish citizen the right to use his or her own language.

The Constitution also protects the environment.

Every Finnish person has legal protection.

It means that the laws protect their rights.

The European Union has a Charter of Fundamental Rights.

Gathering of international delegates; headquartered in New York City. 

A. Statue of Liberty

B. United Nations

C. Gracie Mansion

Answers

the answer is United Nations
explanation- i answered this question already

what danger did farmers face in the 1880s?

Answers

Answer:

The primary danger

Explanation:

faced by farmers in 1880s.

The answer is:

The primary danger faced by farmers in the 1880s was economic exploitation by wealthy members and institutions in society.

Another problem they faced was losing their land or farms because of unpaid debt.

4. Define the following vocabulary terms:
A. Great Leap Forward
B. Cultural Revolution
C. Four Modernizations
D. Tiananmen Square

Answers

Answer:

B

Explanation:

because it is

Which idea is central to the theme that Lincoln develops in the speech?
e
A
The war has developed in ways neither side could have predicted.
on
B
The war will be won by the side that is doing God's will.
с
The recent events of the war are well known to the audience.
D
Leaders should have considered the cost of war more carefully.
to
5
nd
ar

Answers

Answer:

A.

Explanation:

And I quote, " Neither anticipated that the cause of the conflict might cease with, or even before, the conflict itself should cease. Each looked for an easier triumph, and a result less fundamental and astounding ". The war, as we know, Lincoln was opposed to. He didn't want it to happen. But he felt as if it had too, if slavery was to be domlished, but it ended up in a much longer and bloodier war then he and the south had hope for.

10. Awareness of your peripheral space is essential for:
A. Backing/Parking
B. Turning
*C. Establishing lane position
D. All of the above
I need the correct answer

Answers

I believe its D all of the above:) you need it when turning left along with parking backing out and establishing lane position:) hope this helps!
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