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Question 6
2 pts
Banks create money by
a. Printing and issuing paper currency
b. Making interest rates on loans higher than those on savings accounts.
c. Exchanging gold for paper currency.
d. Lending money they are not required to hold in reserve.

Question 6 2 pts Banks create money by a Printing and issuing paper currency b Making interest rates on loans higher than those on savings accounts c Exchanging class=

Respuesta :

Answer:

B

Explanation:

Banks themselves don't print currency so A is out.

Exchanging gold for paper currency does not create new money, it is just equal exchange so C is out.

Lending more money than they are required to hold in the reserve is incorrect because that money already existed and was in the bank's possession so D is out.

The only answer that fits both conditions is B

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